There’s an easy fix to get around this frustrating error message:
Just go to Advanced \ Configuration from the dropdown menu.
In the Configuration dialog, choose File Handling and then DOS/UNIX/MAC Handling in the left-hand tree menu.
Under UNIX/MAC file detection/conversion, just choose Disable to make the error message go away. UltraEdit will no longer prompt you to convert the files, but don’t worry, it will keep them in their original format.