BuddyPress.org

Is full registration (users+blogs) enabled under Site Admin/Options? “Enabled. Blogs and user accounts can be created.” should be selected on that page. I believe this was the error I received when I tried to create a home base and full registration wasn’t enabled.

Also, is this a clean install of 2.6.2 and what version of the BuddyPress plugins are you using so we can help you out if the above issue isn’t the problem.