There's only one forum entry for this error so I thought I would share my experience.
I ran a Kernel Density on about 750 points and outputted a 10000X16000 grid. The input points came from a point layer with a definition query applied to them and the cell-size of the output was set to 2m. I went to re-run the kernel density with a slight change to the query definition and I got Errors 010005 and 010067. The second time I changed the cell size to 5m.
After a reboot - the same errors
After trying the original definition query and cell size - the same errors
I even tried to run the points through a useless IDW and I got:
ERROR 010098: Insufficient number of points and 010067.
I exported the query definition results (250 points) to a new feature class and both tools work great. I have a kernel density raster of 250 points and an IDW of their latitudes.
ArcMap 10 SP2