After running a search on compatibility files I read one of the older threads, http://forums.sketchucation.com/viewtopic.php?f=323&t=17947&p=203864&hilit=Compatibility+files#p203864 that mentioned that the Smustard Organizer plugin caused errors similar to the ones I was having with LibFredo6 instead of the compatibility files system being the perpetrator. I tested this theory by changing the file extensions of Organizer.rb, SmustardOrganizerExcludeFolders.txt, and restarted SketchUp 3 times without an error message. It doesn't make sense that all the other plugins loaded without a problem. The last plugin I installed, LibFredo6 caused error messages, but first plugin installed, Organizer caused the problem.
Another thing that doesn't make sense is the compatibility files system. When I deleted the organizerEdit.log from the virtualstore directory, the compatibility files button on the explorer window dissappered, but I didn't delete the defparms folder (contained no files) and the twilight folder (only contained the twilight license). Why would the compatbility files button dissapear even though not all of the content has been deleted?