Unable to set template properties

I get the error "Unable to set template properties" when trying to edit the template properties using Contribute. I click template properties in the yellow bar and get that message.

I am able to edit the template properties on the page using Dreamweaver but my users need to be able to do it in Contribute.

This happens with pages based on nested templates. If the page is built from the core template then it allows the template properties to be edited.

This is extremely frustrating and I'm tried everything I can think of. I started from scratch and created a basic page with one optional region and nested it with pass-through so I could edit the parameter and I get the same issue.

Please help my users are needing this ability.