Do not have sufficient permissions

wp 3.3.1 multisite Buddypress 1.5.4., Theme: Buddypress Fun
Buddypress active on sub-blog

Buddy press is partially working. Signing up, profiles, activity streams. I am now trying to set up group forums and get the "You do not have sufficient permissions". I am logged in as super admin.

Buddypress settings:
A. Components: all selected
B. Pages: All mapped
C. Settings: Cannot save the last setting option: Restrict group creation to site admins. Either choice will not save. All other items on settings page is showing as saved.
D. Forum: When trying to select install Group Forum - I got the "You don't have sufficient Permissions" I then installed and activated bbPress, selected settings and then went back to Buddy Press and tried the Install existing forum - but got the same "You don't have sufficient Permissions.