The first time I rooted and installed the above, the slider option to switch on Google Now was greyed out (may have been because of the above error message, not sure). I was told that uninstalling all updates to the Google app, enabling Google Now, and re-updating would solve it. And it did.
Now, I've had to re-wipe and reinstall the same ROM and GApps package. Google Now gives me the above error. However, when I uninstall all updates for the Google app, the option to enable Google Now simply disappears.
I should say that Location Reporting is not available in my country (Malta), and those options were never on even at the first rooting and ROM installation.
Thanks a lot!