I couldn't replicate your problem. I don't have LE, but I do have SAS and I was able to open the explorer, right click and select "New..." and "Table" and go through a table design process.
At the end I could save this in a library with a table name I specified.
I think you need to speak with Tech Support since they may be able to replicate your problem.
Pay particular attention to the place where the error appears, and whether you are selecting a library which contains user data, or a SAS system library. The latter may be relevant to whether you have permission to create the table in the location you specified. In general terms, you should always be able to create a table in WORK, and this is a good place to start when you want to check your steps.