Bucket flush not deleting documents

Steps to reproduce:
1. Start cluster_run with 128 vbuckets
2. Create default bucket
3. Add 2 documents from UI doc1,doc2
4. Click "Flush" to flush the bucket
5. Flush doesn't delete data from the bucket. Although in the log its says its flushing the bucket as shown in the below snippet.

The curr_items before and after the flush is 2. And the document is returned using curl i.e.
curl -X GET 'http://Administrator:asdasd@127.0.0.1:9500/default/doc1'

***Log snippet***
<0.824.0>:ns_orchestrator:perform_bucket_flushing_with_config:669]Flushing bucket "default" from node 'n_0@127.0.0.1'
[ns_server:info,2012-09-19T12:48:10.795,n_0@127.0.0.1:'janitor_agent-default':janitor_agent:handle_call:510]Preparing flush by disabling bucket traffic
[ns_server:info,2012-09-19T12:48:10.796,n_0@127.0.0.1:'ns_memcached-default':ns_memcached:handle_call:223]Disabling traffic and unmarking bucket as warmed
[ns_server:info,2012-09-19T12:48:10.797,n_0@127.0.0.1:'janitor_agent-default':janitor_agent:consider_doing_flush:792]Config flushseq 1 is greater than local flushseq 0. Going to flush
[ns_server:info,2012-09-19T12:48:10.798,n_0@127.0.0.1:'janitor_agent-default':janitor_agent:perform_flush:809]Doing local bucket flush
[ns_server:info,2012-09-19T12:48:10.798,n_0@127.0.0.1:'janitor_agent-default':janitor_agent:perform_flush:816]Removing all vbuckets from indexes
[ns_server:info,2012-09-19T12:48:10.798,n_0@127.0.0.1:'janitor_agent-default':janitor_agent:perform_flush:818]Shutting down incoming replications
[ns_server:info,2012-09-19T12:48:10.799,n_0@127.0.0.1:<0.8208.0>:ns_memcached:do_handle_call:427]sync-deleting vbucket 127
[ns_server:info,2012-09-19T12:48:10.811,n_0@127.0.0.1:<0.8205.0>:mc_connection:do_delete_vbucket:147]Deleting vbucket: default/127
[couchdb:info,2012-09-19T12:48:10.811,n_0@127.0.0.1:couch_server:couch_log:info:39]Deleting database default/127
[couchdb:info,2012-09-19T12:48:10.811,n_0@127.0.0.1:couch_server:couch_log:info:39]Deleting file /home/deepkaran/workspace/couchbase-2.0/ns_server/couch/0/default/127.couch.1

Complete diagnostics are attached.