Unable to create pubsub Nodes in ejabberd 2.1.0 beta1

I am unable to create pubsub nodes in ejabberd 2.1.0 beta1.
The node heirarchy is /home/XYZ.com/admin/nodes/SYS1, where "XYZ.com" is the domain & "admin" is the logged in user.
I was able to create the nodes in ejabberd 2.0.5.

Below are the IQ that are send & received from the server.
SEND:

RECV:

I also tried creating instant nodes first as mentioned in the link, "http://www.ejabberd.im/mod_pubsub-usage", but in vain.

Strangely, i was able to create individual nodes. For e.g. i was able to create a node called "SYS1" or even "home"
I get the error whenever i specify node collection/heirarchy like "home/XYZ.com/admin"

The config file (ejabberd.cfg) has the following settings:
{mod_pubsub, [ % requires mod_caps
{access_createnode, pubsub_createnode},
{pep_sendlast_offline, false},
{last_item_cache, false},
{plugins, ["flat", "pep"]}
]}
In the 2.0.5 version, the default plugin was used.
But in 2.1.0 beta1 version, the "flat" plugin is used.
Is this the problem ??