Replication manager 5.4.0 not working with NX4s

I have setup ReplicatorV2 between two NX4s. Replicator is working for replications setup manually for iSCSI LUN. Now I have installed RM 5.4.0 on server and on client. Client is running Win2k8R2 and SQL2008R2. I am trying to replicate LUN with DB on it. W2k8 has two RDMs presented to it via ESX/iSCSI. MS iSCSI initiator is installed and logged into both NX4 targets. I am trying to run replication job, but getting following errors:

ERROR:The storage system name emccs02 and iSCSI server IP address 10.0.2.100 were not validated.

ERROR:Failed while reading catalog data

WARNING:Device E:\SQLData\TEST1.mdf is not on celerra/vnxe storage

I checked and rechecked configurations. W2k8 VM can ping see both NX4s via iSCSI/replication/production VLANs. Can resolve emccs02. emccs02 is the name returned by nas_cel command.