Once I set the novars and nomacros options it seems to work for me like this...

 Code:
$nul = SetOption("NoVarsInStrings","On")
$nul = SetOption("NoMacrosInStrings","On")

use c: \\127.0.0.1\share
@error " " @serror ?
$=execute("use c: '\\127.0.0.1\share' $ERROR=@error")
@error " " @serror ?
"the actual error: " $ERROR ?

get $