Using mosaic datasets with ArcEngine

We used a 3rd party software that uses ArcEngine to work on the daily "checkouts" from a versioned database. I have created several mosaic datasets that reference aerial imagery rasters. Its broke into 5 seperate datasets that total about 55gb. Since I'm the only one needing this detailed imagery I put the datasets/imagery on a portable hard drive attached to my machine. When I use ArcGIS 10.1 desktop to open my local .mxd (same mxd that the 3rd party software uses) the mosaic datasets work great. However, when I use the 3rd party software to open the .mxd I get the following error for each mosaic dataset in the .mxd. The .mxd references the local database for all layers except the mosaic datasets, which it references the local portable hard drive, but I don't see that being the issue. We are thinking it is an ArcEngine issue with the mosaic datasets since it works in Desktop, but I thought I would see if anyone had any ideas. Hopefully that all makes sense. Thanks!

   `AutomationException: 0x80004002 - No such interface supported
at com.esri.arcgis.carto.ImageServerLayer.getFeatureClass(Unknown Source)
at cc.nisc.mapping.util.layer.LayerFunctions$GetFeatureClassFunction.apply(LayerFunctions.java:93)
at cc.nisc.mapping.util.layer.LayerFunctions$GetFeatureClassFunction.apply(LayerFunctions.java:78)
at cc.nisc.mapping.util.layer.LayerFunctions$GetFeatureClassNameFunction.apply(LayerFunctions.java:133)
at cc.nisc.mapping.util.layer.LayerFunctions$GetFeatureClassNameFunction.apply(LayerFunctions.java:122)
at cc.nisc.mapping.util.layer.MapLayers$3.apply(MapLayers.java:167)
at cc.nisc.mapping.util.layer.MapLayers$3.apply(MapLayers.java:160)
at cc.nisc.mapping.util.layer.MapLayers$2.action(MapLayers.java:118)
at cc.nisc.mapping.util.layer.LayerIterator$IteratorImpl.recursiveIterate(LayerIterator.java:149)
at cc.nisc.mapping.util.layer.LayerIterator$IteratorImpl.recursiveIterate(LayerIterator.java:137)
at cc.nisc.mapping.util.layer.LayerIterator$IteratorImpl.iterateLayers(LayerIterator.java:114)
at cc.nisc.mapping.util.layer.LayerIterator$IteratorImpl.access$100(LayerIterator.java:92)
at cc.nisc.mapping.util.layer.LayerIterator.iterateLayers(LayerIterator.java:86)
at cc.nisc.mapping.util.layer.MapLayers.iterate(MapLayers.java:70)
at cc.nisc.mapping.util.layer.MapLayers.findAll(MapLayers.java:113)
at cc.nisc.mapping.util.layer.MapLayers.findByName(MapLayers.java:175)
at cc.nisc.mapping.util.layer.MapLayers.findByFeatureClassName(MapLayers.java:215)
at cc.nisc.mapping.util.layer.MapLayers.findByFeatureClassName(MapLayers.java:228)
at cc.nisc.mapping.controls.ui.SelectableTree.getFeatureLayer(SelectableTree.java:313)
at cc.nisc.mapping.staking.workordersummary.wotree.StkWorkorderTreeAdapter.setData(StkWorkorderTreeAdapter.java:196)
at cc.nisc.mapping.staking.workordersummary.StkWorkorderBrowsePanel.setData(StkWorkorderBrowsePanel.java:194)
at cc.nisc.mapping.staking.workordersummary.StkWorkorderBrowsePanel.performSearchFromPreferences(StkWorkorderBrowsePanel.java:479)
at cc.nisc.mapping.staking.workordersummary.StkWorkorderBrowsePanel.setEntityNavigator(StkWorkorderBrowsePanel.java:165)
at cc.nisc.gui.navigation.AbstractEntityNavigatorPanel.presetEntityNavigator(AbstractEntityNavigatorPanel.java:2175)
at cc.nisc.gui.navigation.AbstractEntityNavigatorPanel.presetEntityNavigator(AbstractEntityNavigatorPanel.java:2007)
at cc.nisc.mapping.panel.MappingDrawerPanel.setEntityNavigator(MappingDrawerPanel.java:300)
at cc.nisc.gui.navigation.AbstractEntityNavigatorPanel.presetEntityNavigator(AbstractEntityNavigatorPanel.java:2175)
at cc.nisc.gui.navigation.AbstractEntityNavigatorPanel.presetEntityNavigator(AbstractEntityNavigatorPanel.java:1961)
at cc.nisc.gui.navigation.EntityNavigator.setEntityNavigatorOnPanel(EntityNavigator.java:2257)
at cc.nisc.mobile.client.MobileEntityNavigator.setEntityNavigatorOnPanel(MobileEntityNavigator.java:1313)
at cc.nisc.gui.navigation.EntityNavigator.selectionChanged(EntityNavigator.java:1977)
at cc.nisc.mobile.client.MobileEntityNavigator.selectionChanged(MobileEntityNavigator.java:1417)
at cc.nisc.gui.util.DefaultSingleIdSelectionModel.setSelectedId(DefaultSingleIdSelectionModel.java:80)
at cc.nisc.gui.navigation.EntityNavigator$8.setSelectedId(EntityNavigator.java:910)
at cc.nisc.gui.util.DefaultSingleIdSelectionModel.setSelectedId(DefaultSingleIdSelectionModel.java:47)
at cc.nisc.gui.navigation.EntityNavigator$8.setSelectedId(EntityNavigator.java:896)
at cc.nisc.gui.nisctree.NTreeSingleSelectionModel.setSelectionPaths(NTreeSingleSelectionModel.java:90)
at javax.swing.JTree.setSelectionPaths(Unknown Source)
at javax.swing.JTree.setSelectionRows(Unknown Source)
at javax.swing.JTree.setSelectionRow(Unknown Source)
at cc.nisc.gui.nisctree.NTree.doMousePressedLogic(NTree.java:488)
at cc.nisc.gui.nisctree.NTree.access$000(NTree.java:31)
at cc.nisc.gui.nisctree.NTree$2.run(NTree.java:465)
at java.awt.event.InvocationEvent.dispatch(Unknown Source)
at java.awt.EventQueue.dispatchEventImpl(Unknown Source)
at java.awt.EventQueue.access$200(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.awt.EventQueue$3.run(Unknown Source)
at java.security.AccessController.doPrivileged(Native Method)
at java.security.ProtectionDomain$1.doIntersectionPrivilege(Unknown Source)
at java.awt.EventQueue.dispatchEvent(Unknown Source)
at java.awt.EventDispatchThread.pumpOneEventForFilters(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForFilter(Unknown Source)
at java.awt.EventDispatchThread.pumpEventsForHierarchy(Unknown Source)
at java.awt.EventDispatchThread.pumpEvents(Unknown Source)
at java.awt.EventDispatchThread.pumpEvents(Unknown Source)
at java.awt.EventDispatchThread.run(Unknown Source)

`