ioFTPD attempts to self-test defined services (i.e. the FTP port you login to) in order to determine if everything is working as intended and the server is processing new logins. If the connection from the server to itself fails the service is marked offline (i.e. not counted as online) and you'll get an error message like you see above. If the service fails to connect 3 times in a row then it's upgraded from offline to failed and if all the defines services are marked failed then the server will suicide since it figures things are really bad...
If you check the debug logfile you should probably see the reason the service was marked offline. This can be everything from failure to allocate a port, no response timeout, etc. See what is says.
I wouldn't worry about this immediately, but you should look into the reason why the server wasn't responding. There could be a number of reasons including a heavily swamped server, a denial-of-service level of connections on the control port, a weird firewall issue with connecting to itself on only certain ports, etc.
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