Bendy bones problem - auto_bone_controller

I am trying to play around with bendy bones and I am having a problem with the auto bone controller. I am trying to figure out what I am doing wrong and looking for help. I have blender 2.78 installed. I tried 2.78c and I could install the plugin, so I dropped down to 2.78. I am getting this error when I run the plugin.

Here is the video I am following along with:

here is the error:


Any thoughts on what the problem is? It only happens when the first bone is not a bendy bone. If every bone I am creating doesn’t need to be a bendy bone, do I need to have 2 rigs? one for the bendy bones, and 1 for the skeletal bones?

Thanks!

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