The message is put out by a third party "exception detector" included now in PowerTools. It also records details in a bugreport.txt file. This file will be in the folder where jv16PT.exe is installed. The file should be attached if you submit through the Bug Tracker system a bug report that involves this sort of message.
An "Application seems to be frozen" type incident may or may not be an issue. It could just be a too short time interval in the "exception detector" logic. When that is the case, chances are clicking "Continue the application" will allow PowerTools to complete whatever it was doing.