Sorry for necroing this thread, but I have an idea what the V.F.M would mean (or where it originated from). While I was checking out the files in this iso file, there were also some files for the Commodore Amiga. One file, in particular, was named VFM.TAR and the readme file next to it said that it is a "proprietary 3D-Engine-Environment". Suffice to say, I think the VFM is the 3d engine for the Urban Assault.
Also, the NUCLEUS.INI file says something about it being a "Ini File for WinVFM". WinVFM is likely a ported version of the original Amiga VFM. It would also explain the "Guru Meditation Error 8100000C" as it was likely the error that the developers encountered multiple times while either developing the VFM or while porting it to the Windows.
For general topics about Urban Assault and any Urban Assault-related topic that doesn't fit anywhere else. If you're not sure, it probably goes in here.