That usually means you are bidding lower then the other persons maximum bid. You have to bid your maximum and then if it's higher then his max it'll stop just over his max. Then the next person has to guess what your max bid is. It shows you a suggested bid amount to drive up the bids slowly.
No i bid over him each time, and each time it read "sorry you have been out bid" and it was by the same user, five times within two minutes? Seriously he must have found a way to auto bid if he was out bid, that's all I can think