Error: You are not allowed to schedule this type of event during this time frame. Please contact your administrator. displays when creating child Events in CRM Online.
One possbile reason is that the end-user does not have access to the Child Event Record Type(Child_Event_Record_Type_vod__c) field in the Event Rule(EM_Event_Rule_vod__c) object.
Be sure the field level security(FLS) of the Child Event Record Type(Child_Event_Record_Type_vod__c) field in the Event Rule(EM_Event_Rule_vod__c) object is granted to the end-user.
CRM Help Documentation: Create Child Events from a Parent Event
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