When I get a cryptic error message like that, I reset the error function to nil and rerun the program to see what is the true error.
(setq *error* nil)
See if this gets you more information on what is going wrong. On a quick look, do you answer all the prompts to the insert command? Doesn't it ask you for the insertion point, x scale, y scale, and rotation?
This worked for me, so I'm guessing you need one more enter ( "" ).
Command: (command "_.insert" "cir-note" '(0.0 0.0 0.0) "" "" "")