New WP.MU Community Install

WP.MU did a community install for us (a client) 2 days ago. They also installed a few plugins which included BuddyPress 1.2.3. When I went into plugins it was flagged for an upgrade. There was a link to information that I needed to read first. Based on the information the upgrade could be automatically done through WP from this version and it was recommended I disable the other BP Plugins.

The problem is that it upgraded fine but it can't activate as I get the following error:
Plugin could not be activated because it triggered a fatal error.

There is a white box below the error but it is empty.

Buddypress is still showing on our domain and working. This must still be the 1.2.3 version.

I have no idea what has been causing this. I can't even send WP.MU a message as I get an error on their contact form saying verification code not generated, even though one is there and correctly filled in. I have sent a mail to WP.MU Dev, but not sure if they will forward the query (to their sister site).

I also have another question? Is it normal that you get an permission denied when you click on settings>discussion. I have site admin access.