Meaning, a lapse, cognitive dissidence, a boycott, negligence, a vacation/holiday, a siesta, laziness, idleness. Can imply both a purposeful or unintentional commission or omission.
I heard Chris Matthews on MSNBC use this term on February 25, 2009. I don't have a quote but he used it in this fashion:
"They took a dixie on that one."
"They did a good job on the paint but took a dixie on the suspension."