problem - getting ANS2604S and ANS1835E and Error 137 from AIX web client

Running tsm 422 under aix 433
The aix 433 system is also a b/a client with Admin rights on itself
A selective backup on the aix client via local dsmc is successful

Then added "passwordaccess generate" to the aix client dsm.sys

Then tried using web interface on same aix client and got the following
error
   ANS2604S - the web client was unable to authenticate with the server
And, the dsmwebcl.log has the following messages associated with the
ANS2604S
   05/19/03   10:42:09 (dsmagent) ANS1835E PASSWORDACCESS is GENERATE,
but password needed for server 'TSMADLAN'.
   05/19/03   10:42:09 (dsmagent) Either the password is not stored
locally, or it was changed at the server.
   05/19/03   10:42:10 (dsmagent) Authentication failure
And, the dsmerror.log also has the following messages associated with
the ANS2604S
   05/19/03   10:42:09 ANS1835E PASSWORDACCESS is GENERATE, but
password needed for server 'TSMADLAN'.
       Either the password is not stored locally, or it was changed at
the server.
   05/19/03   10:42:09 sessOpen: Error 137 from signon authentication.
   05/19/03   10:42:10 Authentication failure

Then tried running a selective backup with "passwordaccess generate"
still in dsm.sys.
The selective backup on the same aix client via local dsmc is
unsuccessful as follows:
   tsm> selective /usr/local/tsmADLAN/dsm.sys
   Node Name: SPF1N1E.ADLITTLE.COM
   ANS1503E Valid password not available for server 'TSMADLAN'.
   The administrator for your system must run TSM and enter the
password to store it locally.
   Selective Backup function invoked.
   ANS1503E Valid password not available for server 'TSMADLAN'.
   The administrator for your system must run TSM and enter the
password to store it locally.

Updating the password via the "update node" command did not help.
It seems that the client password is not being stored locally, causing
the aix web client to fail authentication.

Any suggestions will be appreciated.