How do you set MAXFILEHANDLES without error message?

My D5 application prompts the following error message upon entry:
"EDBEngineError Too many open files. You may need
to increase MAXFILEHANDLE limit in IDAPI configuration".

OK.On the OnCreate event for form1, I put the following:
SetConfigParameter(MAXFILEHANDLES, '400');
where SetConfigParameter comes straight form the
BDE API Examples (DbiOpenCfgInfoList).

When I exit my application, and check the bdeadmin,
the maxfileshandle has been correctly set. And, subsequent
entries into my app are fine, too. The problem is this:

How can I get the app to recognize that the MAXFILEHANDLES
has been increased at runtime, upon initial entry such that it does not give
an error message?
Is there someplace else I can put the
SetConfigParameter call? Is there someway to "refresh" the
MAXFILEHANDLE after setting it at runtime?
Please help.
Thanks
Lauretta