I haven't been monitoring the gnu.emacs.vm.bug newsgroup because it is
essentially defunct. Please use
gnu.emacs.vm.info (or, preferably, the
viewmail-info mailing list).
The behaviour you are finding is normal for VM. If it can't display the
content using the internal viewer for whatever reason, it tries the
external viewer. If you do not want the external viewer to be fired,
then you have to remove that setting from your .vm file.
The error is most likely happening inside emacs-w3m. It is probably to
do with displaying images, as this bug report indicates:
https://bugs.launchpad.net/vm/+bug/595091
It is not a problem that VM can do anything about.
Cheers,
Uday