RB450 Userman,Hotspot,Localsplitting,Failover

Hi,

Here is my setup(refer to picture for a better idea):

RB450 running rOS4.2.
Hotspot and Userman
Splitting local and international Bandwidthe over one ADSL line using 2 PPPoE accounts and static routes.
Automatic Failover on sleeping GW over wireless link (same ISP)

Main Issue:
Everything is working perfectly up until Automatic failover part. When addd an IP address to eth2(the failover port), be it static or DHCP client, the Hotspot cannot communicate with usermanager: "Radius server is not responding". When I disble the address, everything works again and the users can log in as normal.
Outputs:
[admin@MikroTik] /ip hotspot profile> print detail
Flags: * - default
0 *(snip)

1 name="hsprof1" hotspot-address=192.168.1.254 dns-name="access.zah"
html-directory=hotspot rate-limit="" http-proxy=0.0.0.0:0
smtp-server=0.0.0.0 login-by=http-chap,trial split-user-domain=no
trial-uptime=30m/1d trial-user-profile=default use-radius=yes
radius-accounting=yes radius-interim-update=received
nas-port-type=ethernet radius-default-domain="" radius-location-id=""
radius-location-name="" radius-mac-format=XX:XX:XX:XX:XX:XX

[admin@MikroTik] /ip address> print
Flags: X - disabled, I - invalid, D - dynamic

ADDRESS NETWORK BROADCAST INTERFACE

0 ;;; Hotspot Interface
192.168.1.254/24 192.168.1.0 192.168.1.255 Switch
1 ;;; Userman Access
192.168.1.99/24 192.168.1.0 192.168.1.255 ether5
2 X ;;; Failover
192.168.2.76/24 192.168.2.0 192.168.2.255 ether2
3 D 41.240.235.6/32 41.240.192.1 0.0.0.0 ADSLplus
4 D 165.146.191.160/32 165.146.188.1 0.0.0.0 ADSLminus

[admin@MikroTik] /ip route> print count-only
1589


Side issues:
I could not set up Hotspot and userman like the wiki says using 127.0.0.1 - By radius the address is 192.168.1.254 (eth3,4,5 in a bridge) which is my Hotspot interface. And in usermanager the router address also has to be 192.168.1.254
If either these values are changed to 127.0.0.1, I get the "Radius server is not responding" issue. and believe me I have tested it thoroughly.

Also I had to add another IP address to eth5(192.168.1.99) to be able to access the usermanager web interface. I get an "error 404: not found" which is strange. I did everything according to the wiki.

Outputs:
[admin@MikroTik] > radius print detail
Flags: X - disabled
0 service=hotspot called-id="" domain="" address=192.168.1.254
secret="123456" authentication-port=1812 accounting-port=1813 timeout=3s
accounting-backup=no realm=""
[admin@MikroTik] /tool user-manager> router print
Flags: X - disabled
0 subscriber=admin name="router1" ip-address=192.168.1.254
shared-secret="123456" log=auth-ok,auth-fail,acct-fail



Sorry about the picture but I dont have visio intalled and I thought having a physical look at my setup might help the think tank. I am also planning to use netwatch to do the fail over. The RB450 has a Lv. 5 license now after 4.2 so I doubt that license would be an issue.
Let me know if there is something I forgot to print.

Thanx.