It is because your POP3 server reports that it has the capability for SASL authentication type but it does not properly return the necessary settings required for our system to distinguish what kind of authentication to use. Please contact your web host regarding this issue.
The file in question is a part of the PEAR package (/admin/functions/POP3.php) and is not encoded because it is a third party script. Line 300 reports an error because POP3 server does not return its SASL capabilities properly.
UPDATE: We have a report from one of our clients that they were able to suppress this error and to make POP3 connection work by simply commenting out the lines 300-301 in file POP3.php of the PEAR package.
UPDATE 2: We changed the line 300 of that file in order to try to fix it according to the comments on PEAR site. I believe it should work now.