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Using ArcGIS 9.2 and MapObjects (Professional or LT editions) in the same process is not supported.
MapObjects installs and uses the ArcSDE client version 3.0 of the pe.dll and sg.dll libraries. At ArcGIS 9.2 the ArcSDE 9.2 client has more recent versions of pe.dll and sg.dll. The version 9.2 of these .dlls are not backwardly compatible with version 3.0. This is not normally an issue as MapObjects and ArcGIS both install these libraries to different locations; MapObjects installs the libraries to the 'Program Files\Common Files\ESRI' location, and ArcGIS installs to 'ArcGIS\Bin'.
This means that for independent applications both ArcGIS and MapObjects continue to find the correct version of the libraries which are needed to function correctly.
You can therefore install and run independently both MapObjects and ArcGIS 9.2 software on the same machine; it is only the use of both in the same process which is affected.
Installing the MapObjects 2.4 Service Pack for SDE 9.2 Support will resolve this problem for MapObjects Professional 2.4 installations. See the Service Pack readme file for more information.
There is no supported workaround for this issue for MapObjects LT.