Direct LVS with dual VIP not responding to 2nd VIP

Hi,
 
This is probably an apache setup but I am hoping someone here has seen
and solved this problem.
 
I have one director with two VIP's and one real server.
 
Director has both VIP entries in lvs.cf, ifcfg-eth0:xyz is up, and
ipvsadm display looks correct showing both VIP's responding.
 
Real server has iptables redirect setup, running apache 1.3 with a
default DocumentRoot and a <VirtualHost VIP-2> setup.
 
I can browse to VIP-1 and the default website comes up. What happens is
that when I browse to VIP-2 the default site comes up again instead of
site2 even though ipvsadm shows that a connection was made to VIP-2.
 
Any tips or suggestions are appreciated. Relevant files below.
 
Kawika Ohumukini
 
 
============================
DIRECTOR: LVS.CF
 
serial_no = 8
primary = 206.55.140.26
service = lvs
rsh_command = ssh
backup = 0.0.0.0
heartbeat = 1
heartbeat_port = 539
keepalive = 6
deadtime = 18
network = direct
reservation_conflict_action = preempt
debug_level = NONE
virtual 100 {
     active = 1
     address = 206.55.140.100 eth0:100
     port = 80
     send = "GET / HTTP/1.0\r\n\r\n"
     expect = "HTTP"
     load_monitor = ruptime
     scheduler = wlc
     protocol = tcp
     timeout = 6
     reentry = 15
     server RS1 {
         address = 206.55.140.41
         active = 1
         weight = 1
     }
}
virtual 101 {
     active = 1
     address = 206.55.140.101 eth0:101
     port = 80
     send = "GET / HTTP/1.0\r\n\r\n"
     expect = "HTTP"
     load_monitor = ruptime
     scheduler = wlc
     protocol = tcp
     timeout = 6
     reentry = 15
     server RS1 {
         address = 206.55.140.41
         active = 1
         weight = 1
     }
}

============================
REAL SERVER: In rc.local
 
iptables -t nat -A PREROUTING -d 206.55.140.100 -j REDIRECT
iptables -t nat -A PREROUTING -d 206.55.140.101 -j REDIRECT
 
 
============================
REAL SERVER: In httpd.conf
 
...
################################
# SITE 1
DocumentRoot "/usr/local/www/htdocs"
<Directory "/usr/local/www/htdocs">
    AllowOverride None
    Order allow,deny
    Allow from all
</Directory>
################################
# SITE 2
<Directory "/usr/local/www2/htdocs">
    AllowOverride None
    Order allow,deny
    Allow from all
</Directory>
<VirtualHost 206.55.140.101>
    DocumentRoot /usr/local/www2/htdocs
    ServerName www.site2.com
</VirtualHost>

...