I have found a rather simple work around solution. Unfortunately it does suggest there is an issue with WordPress 3.2 multisite administration.
when a new site is registered the error above begins immediately.
Once I went into Network Admin All Sites and clicked save on the info tab everything worked fine. Unless the site will using its own domain no changes need to be made just press save.
However if the site will be using its own domain name just replace the subdomain url with the domain url and it will work fine.
Additionally if media had been uploaded to the site already. the medialinks on posts andpages will need to be updated if using a domain name.
