Been running across this error for several releases, all the way back to 2005. Usually it occurs when specific tools (such as the AEC Callout command, that creates sections, elevations, etc.) are not properly registered when the program is installed. Some users have success fixing this using a repair, but I didn't...and here's why I think that happened.
- ALWAYS install Autodesk products as an administrator. A quick way to do this is instead of just double clicking on the setup.exe file, right click on it and choose "Run as Administrator". Even though I've got admin rights on my Win7 notebook, it doesn't always work - so this guarantees it's installed with the correct rights.
- ALSO - use a CUSTOM install - to do this in 2012, you have to pick the AutoCAD MEP 2012 install package on the new installer - this expands the window to give you your options. I always do a custom install, adding Express Tools, and more importantly, the AutoCAD Architecture profile - that way I have all of the AutoCAD Architecture tools.
After wiping out my initial, "typical" install, and reinstalling, everything works fine...even an old dawg like me needs the shock collar once in a while...