Gnome keyring and KDE KWallet are essentially the same thing (if you are familiar with KDE).
Judging by the message my guess is it can not place the passwords in memory in whatever it defines as a 'secure' place that can't be read or corrupted by other programs.
If it's stored on disk instead of in memory, hopeflly not in $TMPDIR, /tmp, /var/tmp. And stored with a decent encryption algorithm so that access is done by prompting the daemon for it's unencrypted form.
Be worried? Depends on the situation.
The first virtual teletype is a place where a number of system messages go, you can adjust whats sent there with syslog's facilities for it I think.
Which is why I usually use ttyv1 to login from.
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My Journal
Thou shalt check the array bounds of all strings (indeed, all arrays), for surely where thou typest ``foo'' someone someday shall type ``supercalifragilisticexpialidocious''.
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