tcpsvd fails where tcpserver works

Hi,
I am trying to use tcpsvd in place of tcpserver for a test machine. It
is Mandrake Linux 9.2 machine and ipsvd-0.7.0 is used.
I am trying to configure qscanq for qmail. I have in my run file,

#!/bin/sh
exec 2>&1
#exec /usr/local/bin/softlimit -m 20000000 /usr/local/bin/tcpsvd -i ./peers -v -l0 0 25 /var/qmail/bin/qmail-smtpd
exec /usr/local/bin/softlimit -m 20000000 /usr/local/bin/tcpsvd -x tcp.cdb -v -l0 0 25 /var/qmail/bin/qmail-smtpd

In my peer/127.0.0.1 file I have,
# cat 127.0.0.1
+RELAYCLIENT=
+QMAILQUEUE="/package/mail/qscanq/command/qscanq"

Now when I try to send a mail, I get an error like,
# telnet 127.0.0.1 25
Trying 127.0.0.1...
Connected to localhost (127.0.0.1).
Escape character is '^]'.
220 linux ESMTP
helo test
250 linux
mail from: <test>
250 ok
rcpt to: <payal>
250 ok
data
354 go ahead
Subject: Test
.
451 unable to exec qq (#4.3.0)

As you can see I have also tried -x and -i switches too, but same error.
I also tried increasing/decreasing softlimit but no luck.
When I switched to tcpserver I could get it running in a jiffy. My 
tcp.smtp line for tcpserver was,

127.0.0.1:allow,RELAYCLIENT="",QMAILQUEUE="/package/mail/qscanq/command/qscanq"
192.168.:allow,RELAYCLIENT="",QMAILQUEUE="/package/mail/qscanq/command/qscanq"

What am I missing here? Can someone give me some pointers on this please?
With warm regards,
-Payal

-- 
For GNU/Linux Success Stories and Articles visit:
          http://payal.staticky.com