Error, "Failed to create new tuning lab" or "Object reference not set to an instance of an object" when launching the Optimizer (4226900)

Error, "Failed to create new tuning lab" or "Object reference not set to an instance of an object" when launching the Optimizer

Toad for DB2 6.1, connect and open\type a SQL in the Editor. Then select the icon to tune the SQL statement, the SQL Optimizer for DB2 z/os 5.5.0.332 tries to come up but gets a critical error and generates a support bundle.

Exceptoin happens at
Class : TComThread
Method : CreateNewLab
Module : LabCreateNewLab
Message : Failed to create new tuning lab

External exception 80000003

If launching the SQL Optimizer as a stand alone product, it allows to connect to the database, but as soon as anything is typed into the Editor pane, the following error occurs:

Object reference not set to an instance of an object