%7B and %7D are the URL encodings for { and }.

I suspect you haven't written the entry in your routes file properly.

Here's a copy of the routes for a Company model that I have...

Route::model('company', 'Company');

//Showpages.
Route::group(array('before' => 'auth'), function()
{
	Route::get('/companies', array('as' => 'companies', 'before' => 'hasAccess:companies.*', 'uses' => 'CompanyController@index'));
	Route::get('/companies/create/{dynamicFields?}',            array('before' => 'hasAccess:company.create', 'uses' => 'CompanyController@create'));
	Route::get('/companies/edit/{company}',    array('before' => 'hasAccess:company.edit',   'uses' => 'CompanyController@edit'));
	Route::get('/companies/suspend/{company}', array('before' => 'hasAccess:company.suspend','uses' => 'CompanyController@suspend'));
	Route::get('/companies/delete/{company}',  array('before' => 'hasAccess:company.delete', 'uses' => 'CompanyController@delete'));
	Route::get('/companies/show/{company}',    array('before' => 'hasAccess:company.show',   'uses' => 'CompanyController@singleCompany'));
});