Without the thrusters, the capsule was gradually losing altitude, being pulled into the Earth by its gravity. The thrusters are being engaged to move the capsule into a higher orbit and will move it to the International Space Station.
Because of the thruster malfunction, the planned docking with the ISS tomorrow won't happen. It may happen on Sunday, but the date and time are still uncertain.
Elon Musk just announced on twitter that the SpaceX team has gotten two of the Dragon Capsule's thrusters working, enough to get the capsule back under active control.
He also said in a press conference that the other two thrusters seem to be functional and should be fired up "within an hour," so, by 4:30 p.m. EST.