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For some reason Skyrim only says "Can't sleep/wait in this location" no matter where I try to wait or sleep. There are no answers anywhere else, and this isn't caused by any quest or location as I have tried everything. I have no saves before this and my character is level 20 so starting it over would be a pain. I own Skyrim on the PC.

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IS this your first Bethesda game? Because when playing any Bethesda game, you should always, always keep multiple save files. –  Wipqozn Nov 21 '11 at 23:12
    
What platform are you on? Some problems are easily fixable with the console on PC when they can be very difficult to solve on PS3 or 360. –  LessPop_MoreFizz Nov 22 '11 at 0:09
    
Oh sorry I forgot to add that it was on the PC. I edited the body to reflect that. –  Mikael Nov 22 '11 at 0:35
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The game will refuse to let you sleep/wait if there are hostiles nearby. Have you tried simply going somewhere else, or is this persistent across multiple locations? –  SevenSidedDie Nov 22 '11 at 1:31
    
Normally skyrim auto-saves every door or dungeon you go through. –  Sir Ksilem Jan 13 at 10:26
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5 Answers

As I don't have enough rep for comments, let me answer you here.

Sometimes if you have a bounty on your head, the guards will be after you, thus you can't wait/sleep in or around the city..

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I had the same problem, except for the fact that I was in the middle of the final chapter of the dark brotherhood's quests and a guard could appear more or less at any place, and any time and ruin my sneaking progress.

Anyway, whenever I tried to sleep, a guard would appear somewhere close by. Have you been scouting around after you receive the message? Perhaps they won't appear if you are in the middle of a dungeon.

The only way I could solve it was by getting arrested and paying my bounty, then going back to the same place (dropping all my stolen goods beforehand of course).

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Late answer, but I had the exact same prolem: it simply told me "you cannot wait/sleep at this location.
The thing that fixed it for me was that I simply transformed into a vampire lord* (from Dawnguard DLC) and then transfored back. Miraculously it all worked after that. I hope this helps.

*If you dont have Dawnguard I'd imagine a werewolf transformation would also work.

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There is a bug in 1.1 of Skyrim that prevents someone (in certain circumstances) to not be able to press "enter" when trying to Wait or Sleep. I can't upgrade to 1.2 yet I spent hours trying everything and finally found the answer:

If you press and hold the icon that allows you to move the slider left and right and then press "E" AGAIN. It will cause the intended effect.

Wait: Press E, click and hold the slider at the time you wish and (while still holding the slider) press E again, and wait that amount of time.

Sleep: Same mojo.

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Press E instead of Enter.

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