What is the behavior of the try catch statement in lines 1707-1729 in the ui.cpp in the release 0.1?

Question

In the first public release, ui.cpp has this code on the lines in the subject:

void CSendingDialog::OnReply3(CDataStream& vRecv)
{
    int nRet;
    try
    {
        vRecv >> nRet;
        if (nRet > 0)
        {
            Error("The payment was sent, but the recipient was 
                unable to verify it.\n"
                "The transaction is recorded and will credit to 
                the recipient if it is valid,\n"
                "but without comment information.");
        return;
        }
    }
    catch (...)
    {
        //// what do we want to do about this?
        Error("Payment was sent, but an invalid response was received");
        return;
}

The try catch statement at the bottom shows the error as payment sent but invalid response was received. In this case, does this mean that the send BTC would be lost forever as in this question or does this mean that the transaction would be part of some orphaned block (like here).

Bonus, was something done to address the comment in the code?