When trying to create a character on a congested world, make sure you are doing that during the least busiest time as the lock is determined by the amount of people logged in at that time. Being on Balmung I'm reserved to know that more than likely, my friends/family won't be able to join my FC, however, we did get our niece on Diabolos at around 2am, so she can server hop or we can to play and it works just fine. Give it some time for the x-pack new-ness to die down then try again early in the AM (unless our least busiest time is other than that.)