Recently Even Balance dropped support for FEAR Combat (very stupid move BTW ).

So you get into a server, and now, whenever you kill someone, PB kicks you (that PB Init failure message...)

There's no way to make it work properly (updating it didn't work for me), so the only way to play properly FEAR online is pressing "T" (like when chatting) and write

pb_security 0

A message will confirm the change. Now you're ready to go and play!!

Regards

EDIT: I forgot to add that you might need to do this each time you want to play...