Summary:
I am receiving the following error for having the below line in my .vimrc file
Error:
E474: Invali
Not a real solution to your specific problem, but another (non-utf8-safe) way might be just to use ASCII chars, like this:
set listchars=tab:>-,trail:.,precedes:<,extends:>
If you have UTF-8 available, Justins solution is the better one of course.