Not 1000% sure, but it sounds a whole lot like your switch is overutilized (backplane or CPU) and is too busy to deal with watchdog keepalives... Is the switch really busy? Does the console feel responsive? How often do these messages occur?
I haven´t been on site - we have access to net. But via telnet there is no delay when typing commands. Don´t believe switch is busy. This is a high school. It has shown up 4 times 23/9 11:48,15/10 21:47,17/10 16:55,5/11 09:20. These times lead me to believe it isn´t a cpu problem - or should I say a normal CPU problem? Some of my collegues tend to think the customer has a bad NIC on his server. I couldn´t check the actual CPU becuase the old SW vers doesn´t support sho proc. Have you seen any links on CCO that explains watchdog failures? Tried troubleshooting assistant, error message decoder, system errors for 4912 but their is nothing about SYS-3-P2_ERROR: 1/Watchdog failure (NMP virtual watchdog) how to troubleshoot it and how to fix it. ?