I have heard this phrase many times in movies and people who use it as a pun in forums.
-
What does this mean?
-
Where did it originate from?
-
When do we use it?
There is a Wiktionary entry for a slightly different form of the phrase that explains some of this ("Houston, we have a problem"). However, I feel that the wiki page has little information in it. Besides, it's not uncommon to get some other/additional interesting facts about such 'obvious' things in this community.
Best Answer
Originally a genuine report of a life-threatening fault. Now used humorously to report any kind of problem. Note that, given the importance of the event, the expression is used humorously in many languages, not only in English.
The phrase is normally misquoted:
(The Phrase Finder)
The phrase is considered to be one of the most famous understatment in history, from it probably its humorous usage afterwards: