From the Knowledge Base:
Cause
This is expected behavior. The code is trying to assign an ABL class into a property whose type is System.Object. This cannot be done. The compiler error is correct (incompatible types). All .NET classes inherit from System.Object, which in turn inherits from Progress.Lang.Object, but ABL classes do not inherit from System.Object, i.e. the hierarchy is:
P.L.O | <user-defined class>
Workaround
In order to be able to assign an ABL class into a System.Object, it must inherit from System.Object:
P.L.O | S.O | <.NET classes>
Sample Code
USING Progress.Lang.*.
USING System.*.
CLASS a INHERITS Object:
...
END CLASS.