OSPF /MPLS lab setup not working.

Hi I have the lab setup at the following link setup

http://wiki.mikrotik.com/wiki/MPLS_Lab_Setup

Ido have to exceptions to this setup.

PE1 : ether 2 is connected to the internet and there is a default route for it

PE2: there is no pe 2 shortage of routers.

Now for some reason when i do a tracert it’s not using the mpls labels to route.

The tracert looks completely normal.

If i tic “distubute for default route” under: mpls>LDP interface>ldp settings

then outbound routing breaks too.

I am using the new Rb hex series routers but i have tried the same thing with normal RB750’s and got the same results.

Can anyone see anything wrong with that lab setup?