I do not see anything wrong with the error you are getting. Remember that vim knows nothing about latex. All the messages you see is what the latex compiler pulls out (which, in turn, does not know about vim). Everything that vim-latex-suite does, displays the output neatly in the vim buffer / window for readability / correction.
Secondly, I think that you just see the last part of the error message in the Quickfix / log window, and if you scroll up, you should see the correct message. Here is an explanation of what you see and various compilation methods.
Non-stop mode
In this mode, pdflatex (or latex ) compiles without stopping for warnings / errors, which is useful because I really don't want to pause and press enter at every step. Judging by the error message, this is the mode in which you run it. The place where this mode is set is located in ~/.vim/ftplugin/tex.vim , in particular, the following line:
let g:Tex_CompileRule_pdf = 'pdflatex -interaction nonstopmode $*'
To demonstrate, here is a test case that I compiled
\documentclass{article} \usepackage{notapackage} \begin{document} Hello world \end{document}
The message I get:

At first it looks like what you have, but note that they are on lines 42-47 . Scrolling through a few lines, you will find:

In this mode, there is no way to stop it (why it called the mode without stopping!), And this is the behavior that you see if you started it from the terminal.
Interactive mode
In this mode, it pauses for each error and gives you the opportunity to fix (if possible). This is useful for large projects (for example, books running on pages with a large number of equations + floats), where the compilation time is longer and you prefer to pause for correction rather than recompile from the very beginning.
If you turn off the mode without stopping by setting
let g:Tex_CompileRule_pdf = 'pdflatex $*'
and then try to compile, vim will lead you to a terminal where you can enter a new name for the package at the prompt. Since this is a simple example, to visually see the changes after entering a new package, I entered palatino at the prompt. This should compile the PDF file and display "Hello world" in the Palatino font, and it really is! (Palatino is on the left, and CM is on the right by default).


However, I really do not recommend this mode if you, like me, just use latex for your school / math / cv. It will get upset quickly.