No you are not in queue. The server is full and login is disabled. There is only a queue system to handle login traffic load when the server is accepting logins. You are basically being to told to try again at some point in which server load has gone down and logins are allowed without having any idea when that might be.

As an extra tease, after trying for 5 hours today I finally got into queue rather than getting a 1017 error. As I waited for my queue to count down from 51, I got cut off and got the 1017 error. Yay!