Yeah, I thought the Dragon looked a bit driftier than usual, after separation. Glad to know it's alive and talking, if not necessarily in good health. Let's hope they can nurse it back.
It sounds like they're going to have to manually put it in orbit. Probably something happened to the software that auto initiates the thrusters to put it in the right trajectory. I'm just guessing as I'm no Rocket Scientist.
It's in orbit already. The question is whether they'll be able to get Dragon to the station. Most likely it's either a software bug or a faulty sensor -- the vast majority of aerospace problems are generally attributable to one or the other.