I have a test site, where I have wordpress site as the main site, the site with buddypress is setup in a subdirectory, then I allowed new users register a blog. When I login as one of the new users (wpmudev) and go to dashboard, and click on "add new" in classifieds, the site takes me to this link "http://community.kooksjournal.com/members/wpmudev/classifieds/create-new/?"
Then I get the following error:
Not Found / No Access
The page you are looking for either does not exist, or you do not have the permissions to access it."
But if I click on "classifieds" instead of "add new" under the "Classifieds" on the dashboard and this takes me to: "http://wpmudev.community.kooksjournal.com/wp-admin/edit.php?post_type=classifieds"
then if I click on "add new" on this page, it works and takes me to: "http://wpmudev.community.kooksjournal.com/wp-admin/post-new.php?post_type=classifieds"
I created a new user so that you can log in and see what I mean: