I had an error similar to this, but it occured in creating a companion. It usally happens when you just right click in the race menu and press new race. Instead, duplicate and alreay playable race, and then make your race from there.
@ SeV - That sounded like something I would say, damnit.
Really though, these look REALLY good. I'm getting a real LOTR vibe from that city (and it is a good vibe!!) and would love to be the "lord/king/count" of it.