Manny,
Collisions are normal events in shared Ethernet environment. You will virtually always see them in Half-Duplex ethernet operation.
It seems that your hub does not support full-duplex (and if it did, it would be switch then). If error counters do not increase anymore, just collisions, then you are fine.
If your collision rate rises above 10-20%, think about replacing the hub with a full-duplex switch.