It's something that I think most players no longer really are concerned about, but it comes from back during ARR's development, Yoshi apparently promised 1.0 players would get a 'special opening' and a slightly different storyline to new players. However, in the last phase of the Beta test it soon became apparent that a significant number of 1.0 players instead upon starting ARR, were getting the same opening like a new player does, and were missing out on the promised 'Legacy opening' and resulting storyline. SE remained silent on the issue for a long time, leading to a lot of rumours, eventually revealing long after launch that to qualify for the Legacy opening, a 1.0 player had to have passed an apparently arbitrary portion of the 7th Umbral Era storyline in 1.0 (specifically, the Lunar Transmitter battle). Those which didn't were therefore treated like a new player. Accordingly, the community didn't react well to this news.
But like I said, it's all water under the bridge now and is now pretty much meaningless. This thread shows the discussion and SE's official reply, and the resulting fallout and community response:
http://forum.square-enix.com/ffxiv/t...aracters-Story