Hi Keith
1. Does it matter? Well, depends if you are a web professional or a perfectionist then it matters. Otherwise, as far as accessibility to your site, no it doesn't really, as long as the code is not completely duff - and yours just has some minor flabby coding.
2. What does it mean? Well, it means that your code isn't perfect and doesn't meet accepted standards. But many pages (even professional ones) don't !
I notice you have some empty paragraph tags and I would suspect you've cut and paste some bits from Word?? If you have, this is considered rather sloppy in the world of web design as it 'bloats' the code and makes the pages slower to 'load'. Also a few superfluous tags.
Well, you did ask

But the short answer is it is fine the way it is

Cheers
Jonathan