The "Grid View" course format can only be applied to an EXISTING course. Trying to create a new course with this course format results in an error message and it will still display the name of the course in the course list, but the number of courses in the category the course is within is reduced by 1, AND trying to delete the offending course also results in an error message. One has to go directly into the database and edit the database tables to remove the course...To find the listing of courses, login to the database and go to the mdl_course table to find the course record and delete from the database. I am uncertain, however, if other tables need to be purged of data related to the creation of this course (I believe no, because no data was entered into the course and no users were able to be enrolled in the course upon creation because of the course creation error message). Deleting the course from the mdl_course table does remove it from the category/course listing on the site.

Is there any way to fix this error or make a note of it for those applying it to a brand new course?

I tried both the download file from the Moodle modules/plugins: http://moodle.org/plugins/pluginversions.php?plugin=format_grid
And the file from the github: https://github.com/moodleman/moodle-courseformat_grid/zipball/MOODLE_20_STABLE