...
The numbers continue to increase and never seem to stop. I also notice that the keyboard is non responsive and has the numlock and capslock lights blinking together.
those numbers are likely to be seconds since boot-time, and when you see the keyboard leds blinking like that it definately means game over.
Try looking in the log files stored under
/usr/pluto/diskless/#/var/log (on the core) where # is the device number of the diskless media director. Other then that, I've never seen that particular error message before. Sounds a bit like hardware trouble/incompatibility to me.