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VM ssh fails - FlatDHCP

Hi, I am trying to bring up a private cloud on 2 machines using the latest Openstack Essex release on Ubuntu 12.04. Each of the machines has 2 NICs.

On one of the machines, I start the keystone, glance , nova (libvirt-bin nova-network nova-compute nova-api nova-objectstore nova-scheduler nova-volume nova-vncproxy) & dashboard services. On this machine I am able to create a VM instance (Name: vm1) & ssh to the instance. My nova.conf file on this machine looks like this:

--dhcpbridge_flagfile=/etc/nova/nova.conf --dhcpbridge=/usr/bin/nova-dhcpbridge --logdir=/var/log/nova --state_path=/var/lib/nova --lock_path=/var/lock/nova --allow_admin_api=true --use_deprecated_auth=false --auth_strategy=keystone --scheduler_driver=nova.scheduler.simple.SimpleScheduler --s3_host=192.168.1.201 --ec2_host=192.168.1.201 --rabbit_host=192.168.1.201 --cc_host=192.168.1.201 --nova_url=http://192.168.1.201:8774/v1.1/ --routing_source_ip=192.168.1.201 --glance_api_servers=192.168.1.201:9292 --image_service=nova.image.glance.GlanceImageService --iscsi_ip_prefix=10.0.1 --sql_connection=mysql://novadbadmin:nova@192.168.1.201/nova --ec2_url=http://192.168.1.201:8773/services/Cloud --keystone_ec2_url=http://192.168.1.201:5000/v2.0/ec2tokens --api_paste_config=/etc/nova/api-paste.ini --libvirt_type=kvm --libvirt_use_virtio_for_bridges=true --start_guests_on_host_boot=true --resume_guests_state_on_host_boot=true --vnc_enabled=true --vncproxy_url=http://192.168.1.201:6080 --vnc_console_proxy_url=http://192.168.1.201:6080

network specific settings

--network_manager=nova.network.manager.FlatDHCPManager --public_interface=eth0 --flat_interface=eth1 --flat_network_bridge=br100 --fixed_range=10.0.1.0/24 --floating_range=192.168.1.240/29 --network_size=8 --flat_network_dhcp_start=10.0.1.2 --flat_injected=False --force_dhcp_release --iscsi_helper=tgtadm --connection_type=libvirt --root_helper=sudo nova-rootwrap

--verbose

I then bring up the 2nd machine with eth0 static IP address set to 192.168.1.202 & start nova (libvirt-bin nova-compute) services. My nova.conf file on this machine is the same as above with just one additional entry for network_host

--network_host=192.168.1.201

I am able to create a VM on this machine using dashboard (Name: vm2) and the VM comes up. I have also verified this by running nova show vm2 (The OS-EXT-SRV-ATTR:host attribute is pointing to the right hostname). But I am unable to SSH to this instance (SSH error: Read from socket failed: Connection reset by peer) I am suspecting a firewall issue. Do I need to explicitly configure iptables on the 2nd machine?

-Roshan