"Unfortunately, the engine malfunction placed the Falcon 9 upper stage in a slightly different approach to the International Space Station. That new approach caused the stage to violate a set of conditions known as a "safety gate"; there was no way the satellite could ascend to its intended 350km x 750km orbit without crossing the ISS orbit, and no time to check to make sure that no collision would occur. The second stage's flight control software automatically cancelled its second burn, leaving the satellite in a much lower (203km x 323km) orbit than intended. Engineers from Orbcomm and Sierra Nevada Corporation, the manufacturer, are deciding what can be done, and both SpaceX and Orbcomm are being noticeably cagey about their press releases."[1]
That said, it's impressive that they were able to make the proper adjustments and still complete the main objective. I wonder if they can bring the satellite back down, or if the fuels[2] used in the satellite prevent its return.
[1] http://arstechnica.com/science/2012/10/spacex-dragon-capsule... [2] http://en.wikipedia.org/wiki/Hydrazine#Hazards