I am using this https://github.com/nabilt/nRF8001-Breakout-Board here. When I try to modify the schematic I can easily do it. But when I try to place a component in the board it keeps telling me the light version of eagle cannot perform this operation,. The board size is less than the size permitted by eagle.Can anyone give me some pointers as to why this is happening? I have also tried increasing the board size. This doesn't help either
For EAGLE Light Edition the part needs to be placed within the 100 mm x 80 mm (4 inches x 3.2 inches). The area starts at the origin and includes 100 mm to the right on the horizontal and 80 mm up on the vertical.
The thing is, someone can make a board in a paid version of EAGLE and place parts in a larger area. Then you can open that file, but you'll have the aforementioned limitations. So, unfortunately, you can only edit parts in the area that you're allowed unless you buy a version of EAGLE. I recommend EAGLE Hobbyist. I happen to own EAGLE Hobbyist. I'm able to edit all areas of the board that you linked to.
I see that this board fits well within the limitations of the free version of EAGLE. If that's the case then the problem is you're trying to drop the part outside of the limitation. For instance, in your screenshot, you can't place things below or to the left of the small grey + in the bottom left of the picture, that's the origin. Place the part anywhere, within the aforementioned limits, above or to the right of that. The new part in your screenshot is in the illegal area.