BRepMesh_IncrementalMesh failure

I have some examples where BRepMesh_IncrementalMesh fails and I don't know why. I have attached a step file and a test program that shows the problem. I have problems with OCC 6.5, the latest OCE release, and also Roman Lygin's CAD Exchanger. I read in a larger model to my application, saved out the single surface attached, and then reloaded that stp file and I still see the problem.

Any suggestions on how to make this work?

Thanks!