The error message means that it is impossible for Microstran to orient the section axes because you have specified an illegal/impossible reference node or axis. Microstran uses a third node (C) to orient the section axes. With the A and B nodes for the member, C forms a plane in which the member local y axis is located - this is what's normally the section YY axis. By default, Microstran assigns a reference axis to each member - columns usually use -X (global) and other members -Y or -Z, whichever is up. With a reference axis, the C node is effectively at an infinite distance along the axis. Your error would occur if you specified a column with the up axis being the reference axis. The error message means that A, B, and C do not form a plane, but rather, they are collinear.