So, I was working on creating a record center site today and had a couple errors show up on me. The errors were "Access Denied", "System.Exception", and "Error in Application". I was confused being a system administrator why I was not able to create these. When I searched for a resolution I found solutions basically saying it was permissions releated and that it needed to be a top level site in a site collection. I couldn't believe that these were the limitations since the system allows you to select the records center template for creating a sub site.

The actual problem that was causing these errors was that I was naming the title of the new site (or sub site) as "Records Center". For some reason this conflicts with creating the site or creating something in the site since the site is created when i get the errors. I tried again using another name such as "Demo Records" and it created it just fine, I then just renamed the site after it was provisioned back to "Records Center".

Hope this helps.