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Workflow unable to publish when using step Create Record

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I am using CRM 4.0.  I have created several successful workflows, however, if the workflow contains a step for creating a record such as a task, phone call, email, etc. then I receive an error when attempting to publish.  

The error states, "An error occurred when the workflow was being created. Try to save the workflow again."

I can get around the send email issue by choosing the Use Template option.  That works great.  But if I use the Create New Message option it will not publish the workflow generating the same error as above.  So, the main issue is being able to have a workflow create tasks and phone calls.

Any ideas on what I need to do to make this work?


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