No, that is not a kernel panic. A panic is a failure at the lowest level of the system that almost always completely locks the machine. This is what a kernel panic dialog looks like:
I'm not sure what could be the source of the problem. The latest "cure-all fix" is to delete the system caches (cue Defiant). You might should also boot from the Install CD and run Disk Utility to be sure there isn't any damage to the filesystem.