This error indicates that your server is not synchronized to the Ripple network and thus doesn't have current information. It's perfectly normal when your server first starts up -- it can take ten or fifteen minutes to sync up, depending on your bandwidth and hardware.
You should make sure you're actually connected to a few servers and have your validators correctly configured. The
server_info RPC command can help.
The following config entries should help:
You can resolve
r.ripple.com for a list of server IP addresses recommended by Ripple Labs. Currently the list is