Block Migration doesn't work: Nova searches for the Instance on the destination Compute host

I am trying to perform block migration using a recent Devstack installation, with Nova folsom-rc1
but it's not working.
Commit ID: commit 4adbb96b5530184e3f42047a7416d6f315a14150

Issue: Nova searches for the instance to migrate, but on the destination host, and fails as it could not be found.

Here's my setup:
--------------------------

Host 1: ubuntu-devstack1 - Destination host
Controller node running Nova, Keystone, Quantum and Glance (n-api, n-cpu, n-sch, q-agt, q-svc, g-api, g-reg, key)

Host 2: ubuntu-devstack2 - Source host
Compute node running Compute and Quantum Agent (n-cpu, q-agt)

Both hosts are Ubuntu Oneric, time synced, and resolvable to each other using hostnames.

Steps:
1. Spawn an instance - Scheduler spawns it successfully on Host 2 (ubuntu-devstack2), and stays ACTIVE.
2. Perform block migration.

rohit@ubuntu-devstack1:~/devstack$ nova live-migration --block_migrate fdd7f23e-427d-478d-af61-c7bd6c9d6b91 ubuntu-devstack1
(Here, my source=ubuntu-devstack2, and destination=ubuntu-devstack1)

ERROR: Live migration of instance fdd7f23e-427d-478d-af61-c7bd6c9d6b91 to host ubuntu-dev-stack-vertex failed (HTTP 400) (Request-ID: req-a13bf2ad-8be7-43b8-9a07-441c18e7009d)

3. Compute log on source - No logs generated after running the command
4. Compute log on destination - http://paste.openstack.org/show/20593/

It seems nova is looking for the instance on the destination host.

A check for 'virsh list' on both source and destination showed the correct output, instance was listed on the source (ubuntu-devstack2) and did not list on the destination (ubuntu-devstack1).