freeradius ldap auth "sort of" working ?

[Horatiu Nimigean]

Greetings.
I have a problem with freeradius using ldap to auth, here are my system 
specs:

Centos 6 64bit
freeradius installed from repo
> rpm -qa | grep -i freeradius
> freeradius-ldap-2.1.12-4.el6_3.x86_64
> freeradius-2.1.12-4.el6_3.x86_64
> freeradius-utils-2.1.12-4.el6_3.x86_64
ldap already up and running, on localhost. everything is local btw, 
there are no remote services and ldap is (test environment) accepting 
unsecured connections.
> rpm -qa | grep -i openld
> openldap-devel-2.4.23-32.el6_4.1.x86_64
> openldap-clients-2.4.23-32.el6_4.1.x86_64
> openldap-servers-2.4.23-32.el6_4.1.x86_64
> openldap-2.4.23-32.el6_4.1.x86_64

radtest fails
> radtest testuser_1 "letmein_1" localhost 2 testing123
> Sending Access-Request of id 214 to 127.0.0.1 port 1812
>         User-Name = "testuser_1"
>         User-Password = "letmein_1"
>         NAS-IP-Address = 127.0.0.1
>         NAS-Port = 2
>         Message-Authenticator = 0x00000000000000000000000000000000
> rad_recv: Access-Reject packet from host 127.0.0.1 port 1812, id=214, 
> length=20
and this is the output from radius (ran as radiusd -X)
http://pastebin.com/MT0txW2c

i don't understand. it auths but then it doesn't.. the final result is 
not successful
Thanks in advance,

Horatiu