ch54 - as Billy's answer indicated
Fair or foul territory is irrelevant. The line between error and not has, by custom and practice, been defined as failure to make any play judged "routine." If you think about it, it makes sense. It would be wrong to penalize a guy for failing to make a play that the average big-leaguer wouldn't normally be able to make on a consistent or regular basis.
Among common misconceptions ... it is possible to make an error on a ball not gloved. It is possible to glove a ball but not be charged with an error.
A perfect example of the latter is the ball Jeter fielded deep in the hole last night, but had to throw pivoting off his knees. That's not a routine play that the average big-league SS could be expected to make on a regular/routine basis. Hence it was correctly ruled a base hit rather than charging Jeter with an error, contrary to the mistaken ramblings posted earlier.
p.s. thx for your comment on the Clemens post.