Problems with distributed monitoring and passive checks

I've setup distributed monitoring with one distributed server (for now) and
one central server (the central server also does active checks of some
services).

I've gone through the documentation and setup the two servers as stated
(don't think I missed anything) however I'm having a couple of problems.

1)  The central server keeps switching the Passive Checks from Enabled to
Disabled and back again (as viewed by the web front end).  Also from the
front end if you look at the Active Checks and Passive Checks (from the
Tactical Overview), the number of disabled checks keeps changing minute by
minute.

2)  The passive information is not being sent to the central server from the
distributed server.  It works fine if I run the check from the command line
(using the same path, name, etc); however with Nagios running on the
distributed server I never see any data being sent to the central server.
I've verified this by using tcpdump to watch for traffic coming from the
distributed server (no traffic has been received, other than some standard
ARP or TCP traffic.

I've tried playing with the retain_state_information (setting it to 0 and 1)
and also the retain_nonstate_info in the service config on the central
server.  All to no effect.

Am I missing something?

TIA

Mike

-----

Following is the config (relevant portions shown):

Platform: Running Nagios 1.0, Linux 8.0 -- on both systems

Distributed Server (bare bones nagios setup) service configs:

-- Service Template:
define service{
        name                            standard-service
        active_checks_enabled           1
        check_period                    24x7
        check_freshness                 0
        contact_groups                  noc-email,noc-pager
        event_handler_enabled           0
        flap_detection_enabled          0
        is_volatile                     0
        max_check_attempts              4
        normal_check_interval           1
        notifications_enabled           1
        notification_interval           0
        notification_period             24x7
        notification_options            w,c,r
        obsess_over_service             1
        parallelize_check               1
        passive_checks_enabled          0
        process_perf_data               0
        retain_status_information       1
        retain_nonstatus_information    0
        retry_check_interval            1
        register                        0       
        }

-- Service description (only showing one -- note that this check is also an
active check for other devices on the central server and it works fine):
define service{
        use                             routers
        host_name                       jaxinetrt1
        service_description             UUNET-Shadow Inbound
        check_command
check_threshold_in!SNMPPASS!5!1389600
        notification_period             workhours
        event_handler_enabled           0
        max_check_attempts              1 
        normal_check_interval           5
        }

-- nagios.cfg
cfg_file=/usr/local/nagios/etc/commands.cfg
cfg_file=/usr/local/nagios/etc/customcommands.cfg
cfg_file=/usr/local/nagios/etc/contacts.cfg
cfg_file=/usr/local/nagios/etc/contactgroups.cfg
cfg_file=/usr/local/nagios/etc/hosts.cfg
cfg_file=/usr/local/nagios/etc/hostgroups.cfg
cfg_file=/usr/local/nagios/etc/services.cfg
cfg_file=/usr/local/nagios/etc/timeperiods.cfg
#
obsess_over_services=1
ocsp_command=submit_check_result

-- customcommands.cfg
define command{
    command_name    submit_check_result
    command_line    $USER5$/submit_check_results.sh $HOSTNAME$
'$SERVICEDESC$' $SERVICESTATE$ '$OUTPUT$'
    }

-- resource.cfg
$USER5$=/usr/local/scripts/nagios


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