I've pulled this from a private email thread and summarized the information below. Others may be experiencing this, so here is the scenario, error message and the resolution.
Scenario and Error Message:
The administrator receives a error whenever she tries to send a document to the configured records repository. The error reported on the screen is "An Error occured while sending the file to the Official Records repository". There are no entries in the Event Logs but there is an entry in the 12\Logs directory saying "the user or group 'SHAREPOINT\system' is unknown".
Solution:
This is a rights issue. If you are logged in as an account that is seen by SharePoint as a system account, then you will get this error message. Now, if you used the Domain Administrator account to install SharePoint Server 2007 and/or if you used the Domain Admin account as the application pool account, then the Domain Admin account is seen by SharePoint as a system account and will not have rights to send a file to a records repository. Any account that is an application pool account or service account, those will be seen by SharePoint as a system account (sharepoint\system).
Best practice is to give the first application pool account enough rights to install SharePoint Server 2007, log in as that account and install SharePoint under that account, then don't use that account again and decrement the account's permissions to the level needed for the account to be an effective, successful application pools account.