[Spacewalk-list] yum update does not see any new packages from a spacewalk server.

[Eugene]

I am experimenting with 1.7 release by feeding updates to two fedora 16 systems. One (i386) behaves as expected and another (x86_64) does not see any updates from spacewalk however spacewalk side is not showing any abnormalities. Right now it reports 20+ packages needs an update but neither scheduling an update and running rhn_check nor running yum update on a target system results in any updates.

Here is the output of rhn_check -vvv
....
D: closed   db environment /var/lib/rpm
D: Called update[['bash', '4.2.24', '1.fc16', '', 'x86_64'], ['chkconfig', '1.3.59', '1.fc16', '', 'x86_64'], ['cpp', '4.6.3', '2.fc16', '', 'x86_64'], ['exempi', '2.2.0', '1.fc16', '', 'x86_64'], ['gcc', '4.6.3', '2.fc16', '', 'x86_64'], ['gcc-c++', '4.6.3', '2.fc16', '', 'x86_64'], ['kernel', '3.3.0', '4.fc16', '', 'x86_64'], ['kernel-devel', '3.3.0', '4.fc16', '', 'x86_64'], ['kernel-headers', '3.3.0', '4.fc16', '', 'x86_64'], ['libgcc', '4.6.3', '2.fc16', '', 'i686'], ['libgcc', '4.6.3', '2.fc16', '', 'x86_64'], ['libgfortran', '4.6.3', '2.fc16', '', 'x86_64'], ['libgomp', '4.6.3', '2.fc16', '', 'x86_64'], ['libquadmath', '4.6.3', '2.fc16', '', 'x86_64'], ['libstdc++', '4.6.3', '2.fc16', '', 'i686'], ['libstdc++', '4.6.3', '2.fc16', '', 'x86_64'], ['libstdc++-devel', '4.6.3', '2.fc16', '', 'x86_64'], ['libtool-ltdl', '2.4', '9.fc16', '', 'i686'], ['libtool-ltdl', '2.4', '9.fc16', '', 'x86_64'], ['libuser', '0.57.4', '1.fc16', '', 'x86_64'], ['libuser-python', '0.57.4', '1.fc16', '', 'x86_64'], ['ntsysv', '1.3.59', '1.fc16', '', 'x86_64'], ['psmisc', '22.16', '1.fc16', '', 'x86_64'], ['rpmfusion-nonfree-release', '16', '3', '', 'noarch'], ['xorg-x11-server-Xephyr', '1.11.4', '2.fc16', '', 'x86_64'], ['xorg-x11-server-Xorg', '1.11.4', '2.fc16', '', 'x86_64'], ['xorg-x11-server-common', '1.11.4', '2.fc16', '', 'x86_64']]
D: Sending back response((6,), 'Error while executing packages action: empty transaction', {})
D: do_call packages.checkNeedUpdate('rhnsd=1',){}
D: local action status: (0, 'rpm database not modified since last update (or package list recently updated)', {})
D: rpcServer: Calling XMLRPC registration.welcome_message
D: closed   db index       /var/lib/rpm/Providename
D: closed   db index       /var/lib/rpm/Name
D: closed   db index       /var/lib/rpm/Packages
D: closed   db environment /var/lib/rpm

# yum upgrade
Loaded plugins: langpacks, presto, refresh-packagekit, rhnplugin
Setting up Upgrade Process
No Packages marked for Update

Please suggest.
Eugene.