I have a model with this property:
[AllowHtml]
[DisplayName(\"Widget for Table\")]
[StringLength(1000, ErrorMessage = \"Maximum chars 1000\")]
The way you are using AllowHtml should work. Make sure that you are not accessing the HttpRequest.Form collection anywhere else in your code (controller, filter, etc) as this will trigger ASP.NET Request Validation and the error you are seeing. If you do want access to that variable then you should access it via the following code.
using System.Web.Helpers;
HttpRequestBase request = .. // the request object
request.Unvalidated().Form;