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The situation began like this:

  1. We upgraded our SharePoint 2010 (using the Project Server 2010 February 2013 Cumulative Update)
  2. We found a bug where on the 'Project Page' layout the 'Managed Metadata' field called 'Wiki Categories' will throw a HTTP 500 AJAX call to the TaxonomyInternalService -> GetMatches and GetSuggestions functions
  3. A fix for this was to go to Central Admin -> Manage Web Apps -> General Settings -> Turn off Web Page Security Validation
  4. But we have noticed now that the Site Settings -> More Option -> Create list, site etc. will throw a 'Silverlight Unhandled Exception'
  5. The answer on the net to fixing this bug is to turn Web Page Security Validation 'On' which will re-introduce the Taxonomy AJAX issue.

Does anyone have any idea how to fix these issues or have experience in dealing with them?

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I have the same problem did you find a resolution? –  Alexis Pink Apr 18 '13 at 22:28
    
No, we have a call with Microsoft Premier Support but yet to receive feedback, were just lucky that Sites and Lists aren't created very often. –  jaded_kin Apr 24 '13 at 1:49
    
Any solution guys? I am also having the same issue. –  Ram Jul 10 '13 at 11:12
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