What does it mean if you get this error ([03011052] ) when you create a merged patch with FO3edit?

I may not be an expert but maybe your patch is defective.

Why?

It should tell you if you scroll up which mod errored out.

Yep, garybash usually points you at the file in question. It could be an error with one of the mods your trying to patch.

On another note, has anyone had an issue where a patch builds cleanly, no errors mentioned, however you ctd every time when exiting a certain cell? (In this case Silver's house to the outside world). If I deactivate the patch, and simply activate all the mods, the problem vanishes. So I am guessing that in the process of merging mods something went wonky.

I'm assuming you mean you made a merged patch in FO3edit? It sounds like you made a merged patch and went and deactivated mods, I don't think you're supposed to do that with a merged patch...

No, I allowed the program to turn off the mods prior to the patch being built. Some of the mods were merged into the patch, others imported into it(Project beauty for example). I didn't turn off anything manually until the problem occurred. I am hoping it was just a freak occurrence, but its the first time I have ever seen that issue.

Check the 3rd mod in the load order after Fallout.esm, which is 00, and look for formID 03011052 in it and see if it has errors, and fix these if possible.
They actually will display in the right panel in the affected field where they occur in the item/creature/whatever.