I can't reproduce it using 4.01. I've created a datasection with 700 address labels followed by an IncludeBinary (all the same file, maybe that makes a difference?) and it compiles and runs without error. Is your exe file size above 64 mb? If so, it's probably the same as Droopy's issue as the number of labels can be at least 700+ and probably much more.
One solution would be to put all the images into one large .bin file and get them in on program start with ReadData-CatchImage 400 times.
I goofed up- I forgot to compress a couple of those many bitmaps, so that the final executable would need to be larger than 64MB, which obviously is a current POLINK limit. Thanks for your feedback!