10 years ago, SAP did not even have unicode.
Had you created the LSMW object from scratch or did you get this object from someone else and imported it to your system?
When does the error occur?
what does the syntax check in SE38 for report /1CADMC/SAP_LSMW_READ_00000196 tell you?
From where do you read? Application server or presentation server (your PC)?
if application server, then tell the details or better make a screen shot of LSMW step 7 Specify Files