The default flag auto (which calls InetAddress.getLocalHost().getHostAddress()) returns localhost on our Linux distro (FC3) rather than eth0 where multicast is enabled - hence breaking session replication. Fix: Change /etc/hosts so that the localhost domain resolves to the actual IP address of the NIC, eth0. Have seen a fair amount of traffic on message boards, best to make aware asap. thanks
Added this as a clustering FAQ question and answer. Thanks.