snmptrapd - unable to receive informs

I have a setup where I am running snmptrapd - and I am not able to get informs.
Traps work fine, also I am able to get informs using MgSoft as the trap receiver.

My setup on snmptrapd - where snmptrapd.conf is:
authGroup log,execute,net -s usm groupV3 authpriv .1 -v notifyview
authAccess log,execute,net -s usm authPriv groupV3 .1 "" view notifyview  included .1  
createUser jlnewuser MD5 abcdefgh DES abcdefgh

my setup where traps are being sent from is embedded net-snmp where snmpd.conf is: 
authtrapenable 1
group groupV3  usm jlnewuser 
view readview included .1  
view writeview included .1  
view notifyview included .1  
access groupV3 ""  usm  authPriv  exact readview writeview notifyview 
trapsess -r 3 -t 1500 -Ci -e 0x80001f888089d4a911f37e044e -l authPriv -u jlnewus
er -a MD5 -A abcdefgh -x DES -X abcdefgh 10.11.12.32 
createUser newuser MD5 abcdefgh DES abcdefgh 

where x80001f888089d4a911f37e044e is the engine id snmptrapd

I run snmptrapd -d -D -L f traplog2

and in traplog2 the error I see is:

trace: sc_get_properlength(): scapi.c, 117:
trace: usm_process_in_msg(): snmpusm.c, 2408:
usm: Unknown Engine ID.
trace: snmpv3_parse(): snmp_api.c, 3813:
dumph_recv:     ScopedPDU
trace: _snmp_parse(): snmp_api.c, 4166:
snmp_parse: Parsed SNMPv3 message (secName:jlnewuser, secLevel:authPriv): USM unknown engineID
trace: snmpv3_build(): snmp_api.c, 2193:
snmp_build: Building SNMPv3 message (secName:"jlnewuser", secLevel:noAuthNoPriv

and ideas on how what is wrong with the above setup would be greatly appreciated. Also if the receiver is MgSoft - the informs work fine.

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