It just says the steadystate is not right. If you solve it by yourself, you’d better check it. If Dynare does it for you, it means Dynare can’t find the solution.
Thanks for the reply. However, the reason for this warning was that my matlab file was written for Dynare 3 and not 4 (and I wanted to run in both). You need 2 different matlab files for these 2 versions of Dynare as Michel once told me.