I have my inotify watch limit set to 1024 (I think the default is 128?). Despite that, yeoman, Guard and Dropbox constantly fail, and tell me to up my inotify limit. Before do
inotify filesystem options
sysctl fs.inotify
opened files
lsof | grep inotify | wc -l
Increase the values like this
sysctl -n -w fs.inotify.max_user_watches=16384
sysctl -n -w fs.inotify.max_user_instances=512