Log says "duplicate requests", CPU maxing out

[Chhaya, Harshal]

Thanks to Alan, we are now running freeRADIUS 2.1.3 on our
embedded network controller.

The problem is that now it is less stable than the 1.1.7 
version we had been using.

Again, I am sure our config is screwed up.

For example, the 'radius.log' file contains dozens of files
saying:
Error: Discarding duplicate request from client test-net
port NNNN - ID: XX due to unfinished request YYY

The client.conf file has this entry:
client 192.168.0.232/24
{
	secret = testing123
	shortname = test-net
}

The config uses a flat file with uernames and cleartext passwords.
There is no SQL database in the backend.

Also, when we have 40+ clients attempting to connect to RADIUS, 
the CPU utilization reaches 100% and the processor becomes
unresponsive.

The 'maxserver' parameter in radiusd.conf is set to 32 (as it
was for the older version). I am upping it to 64 to see if 
that solves the CPU problem.

Thanks for any insights.

Regards,
- Harshal