Every time someone posts a thread like this, they're from Balmung server. I check server next to their forum avatar every time I see a thread like this.
You would think these people are new to MMOs. In most MMOs you cannot make a new character on overcrowded popular servers, even if it's in the dead hours around 4 am. If you want to play with your friend, have him make a character on a medium populated server and transfer your character to that server. The server I'm on, Leviathan, is somewhere between high and medium as we use to be the 5th most populated server. Any server medium population, give or take a little, is good. However, if you refuse to transfer for whatever reason, maybe due to friends and/or FC you already have on Balmung, then you might have to face the fact that you won't be able to play on the same servers. Another option is to make an alt and play on his server. Maybe he'll get lucky and by some miracle be able to create a character on Balmung.
Server limits exist for a reason. A server cannot have an infinite amount of players for technical reasons.