Okay so today I installed a new template for a website I am designing for a company and many of the template features require K2. So I installed the most recent version of K2. Everything seemed dandy up until I tried to create a new category at which point I get the "Internal Server Error" message. So I tried to import joomla categories and got the same message. So I then uninstalled and reinstalled a new download of K2 but I am still experiencing the same problems. I am able to create user groups using K2 though. Does anyone have any suggestions? Any help is appreciated.

Thanks,
-John

I would check the K2 information tab and make sure everything is enabled, espeically the mb_string.
I would also increase the php timeout to and upload limit to see if that helped.
And turn sef and htaccess off. Try with error reporting to maximum to see if the error is displayed with more detail
Another thing to check would be to set the beez20 as default and see if you get the same errors