Well it not exactly an isult but its definetly not a compliment and their not being nice their saying your not too ugly which means they think your ugly but not too ugly. Btw your def. Not ugly :)
IT MEANS that person doesn't know what ugly is...they havent seen ugly..they should go to people with burn marks all over their face..they should go to people with facial deformities...and then they will realise what ugly is...