When user is trying to create a new section by free hand or trace, an error displays stating that editing cannot start due to differing spatial references.
You need to check the SRIDs for the network layer AND the Data Frame. To check this, please go to View->Data Frame Properties and then click on the Coordinate systems tab. See which is the currently selected Spatial reference. Now, click on the Layers item in the same tree view and check the SRID for your network layer- its probably set to unknown. For editing to work both data frame and underlying layer must have the same SRID. If network layer is set to UNKNOWN you will need to change the Data frame properties to UNKNOWN as well.
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