My error was resolved because I was inserting a space into the name of the feature class. I ran some Python to remove the space from my variable and this fixed the issue. I was inserting the values from a field into a variable, and naming the feature class from the variable. Unfortunately, some of the values had spaces in them. See following thread: http://gis.stackexchange.com/questions/92254/renaming-a-variable-input-to-replace-spaces-with-underscores-to-be-used-in-an-ou It would be nice if ArcGIS would account for this problem - either by automatically inserting underscores for spaces, or by giving an error that makes sense.
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