This took me many frustrating hours to find, and I've added it as someone else may find it useful.

Description:
Compiling an application, even one I havent worked on for years results in above error.

What Borland/Codegear suggested:
Delete the resource file (.res) of the application and let the IDE recreate it when you load the project.

What actually worked for me:
What I eventually determined was that all the projects producing this error used some JCL/JVCL components.
I completely uninstalled the JCL/JVCL components and re-installed it. This fixed the problem.

Here's the uninstallation procedure that I used (extract from JVCL install notes)

If you have a previous version of the JVCL installed, you must remove it completely along with the JCL before installing this version. To remove a previous installation, proceed as follows:

1. Start the IDE, open the packages page by selecting Component - Install Packages
2. Select each of the JCL / JVCL packages in the list and click the Remove button
3. Open Tools - Environment Options - Library and remove all library paths pointing to JVCL and JCL folders
4. Repeat step 1 to 3 for every version of Delphi and C++ Builder you have installed
5. Close the IDE
6. Browse to the folder where your bpl and dcp files are located (default is $(DELPHI)\Projects\Bpl for Delphi, $(BCB)\Projects\Bpl for C++ Builder). Delete all of the files related to JVCL and JCL
7. Delete or rename the top folder where JCL and JVCL is installed
8. Start regedit (click Start - Run, type "regedit.exe" and hit Enter). Open the key HKEY_CURRENT_USER\Software\Borland\<compiler>\<version>\Palette and delete all name/value items in the list related to JVCL. (<compiler> is either "Delphi" or "C++Builder", <version> is the IDE version you have installed)