I thought the error was because I upgraded Joomla 2.5 on it's latest subversion and it did conflict some files so I tried my local site and the error was the same. I concluded that maybe it's not the upgrading part that does the error but maybe there's some glitch on Joomla 2.5. So I did some research and I found that it has to do with the global configuration. So here's the solution:
1 Go to Site > Global Configuration 2 Go to fourth tab which is Permissions 3 Locate Create then set it to Allowed
There you have it! Enjoy!