No category specified -  while creating Room

dear friends,
I am getting 'No category specified!' message when ever i try to create Collaboration Room.
I updated my server with Hotfix 7 according to a SAP Note 787677. and updated DB patch too.
but no problem stil exists.
can anybody look into it.
please reply me with answer.
early reply appricated
thanx in advance
regards
Lakshmikantha

I don't know EG01 transaction, but if SAP says "material 5 does not exist " then SAP is usually right.
Can you give an evidence that material 5 exists? e.g. screenshot from  SE16 at table MARA, MARC and MAST

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