It means that all of the packet buffers in the TCP/IP stack were full, and in an effort to keep your world happy, we forced FIFOs to empty. It loses data, but keeps comm comm-ing. Check $EthDroppedPkts(DST40) and $EthStoppedIntr(DST41). On a clean network, they should stay fairly low. If they aren't, there might be some traffic we care about.
Now what it really means can vary, but generally it means that one or more open ports are not getting serviced. That could be:
1. You created a UDP or TCP device, which something out there is sending packets to, but you aren't doing anything in the program.
2. There was a data storm that caused the FIFOs to fill up faster than we could process them.
3. We have an open port that I'm not aware of, and something on your network is sending packets to that port.
If it is #1, you need to either delete the device or do something with it.
If it is #2, there may not be anything to do. I would expect the DST registers I mentioned above to have relevant info.
If it is #3, then yes, we should be concerned and really need to get to the bottom of it.