This pretty much means a bad battery or charger. The early Dell 130W chargers seem to be affected by this problem far more then other Dell chargers. The easiest way to identify these troublesome chargers is to check if Dell is molded into the plastic enclosure on the blank side.
If you have determined you are dealing with one of these early chargers, replace it with a newer unit. At this point in time, this is the charger you want: DP/N 0VJCH5 or newer. You want the charger with the unmolded top, since they removed the Dell stamp from later revisions of the charger. If you're under warranty contact Dell and have them replace it. If you're out of warranty you'll have to purchase the new charger yourself. If your computer's BIOS complains, Dell will often replace the charger first. If it says "unidentified charger", you're set for a easy warranty replacement. If you need to use it and don't have a spare, I've outlined a workaround in this answer.
However, If you are out of warranty you should do some self troubleshooting before buying replacement parts. Check the indicator lights against this support document first: E6540 diagnostic lights
If replacing the charger doesn't fix it, it's a battery problem. The battery has a problem the BMS never detected, since the problem is likely intermittent and not persistent. If it was serious, the battery is far more likely to be bricked with a permanent battery failure POST warning as soon as the BMS detects the problem.
If you replace the charger and reboot the system to get a POST error relating to a permanent battery failure, the battery will need to be replaced.
If you replaced the charger and it's replacing one of the early units, I'd suggest keeping it unless you replaced it under warranty. Put the old one aside as a spare and relegate it to that since it's only a matter of time before it also ends up failing. Don't use it in a mission critical environment either.
What's wrong with these early chargers?
These early 130W units likely have problems with the 8 pin sense IC. This is bad since the Dell computer reads it and if it can't make out what the charger *is*, it won't charge the laptop and may even throttle it. The only way for it to work correctly is for the charger to identify as Dell and register the wattage to the system.
Can I still use the charger?
Whether you can use the charger or not depends on the failure mode. If the sense IC is intermittent, you can often use the charger with the problematic sense IC, but it's just a temporary workaround. The charger needs to be replaced once this problem comes up.
If the sense IC is so bad you can't get it to register at all (even with the workaround), you'll need to replace it to avoid throttling and be able to charge the battery. Order a new charger with expedited shipping to minimize (or prevent) battery damage.
If you need to use the old charger until your new one arrives, unplug the charger until the LED ring on the charger tip goes out. Once it goes out, try again. More often then not, you will find this is sufficient to get the laptop to accept the charger without rejection. Do this until your new charger arrives and ID the old one as bad so you don't mix the chargers up. I wouldn't push it more then you need to since it's only a matter of time before you will find the sense IC has failed completely. This fix generally works for ~1-2 weeks, which gives you plenty of time to order it and receive your new charger.
This is the workaround I used until the replacement chargers I got from Dell came and it always worked for me. It usually stopped working reliably past 5 days or so, but your mileage will vary depending on the extent of the problem with the sense IC.