That's what I also found in the manual....but there is no exact definition! Because if i have a look at these genes in the genome browser some of them look really ok...not shallowly sequenced....bit strange :(
For example PE 2x65bp one condition mapped and quantified with tophat and cufflinks:
ACTG1 - - ACTG1 ACTG1 TSS22993 chr17:79476996-79479892 - - 1599.66 0 1866.02 FAIL
http://imageshack.us/photo/my-images/813/actg1.png/
does this look like a fail??