Solution
One of the reasons this error occurs is when the digital pin being written to is not configured as an output. To configure the pin properly, in the Functions Palette, navigate to
Arduino Interface for LabVIEW »
Low Level VI »
Set Digital Pin Mode.vi and include it in your block diagram as follows:
Screen shot from Simple LED Example.vi, found in Related Links below
The pin you are writing to should indicate the proper digital signal with the proper configuration.