Sorry to dig up this old thread, but it was the only reference to this error code I could find during my Google search. For the sake of anyone else experiencing this error I'll share my experience and what I learned.
Error 1 is a communication problem between the controller and multiplexor. It could be the controller itself, the multiplexor or the cable between.
Having 2 system controllers, I swapped in another and still saw the issue. I also swapped in a spare cable and the issue persisted. This left the multiplexor. I swapped in a new multiplexor (grabbed of eBay) and the system was back to functioning as normal.
Panasonic says this issue is usually the cable or the controller, and not often the multiplexor. In my case however it was the multiplexor that was the issue.