vShield VXLAN with Cisco Nexus 1000v Issues

Here is my setup

1 virtual center 5.1

4 hosts 5.1

Cisco Nexus 1000v.4.2.1.SV2.1.1a

2 uplink trunks

12 veth port profiles

vShield 5.1.2

vCloud Director 5.1.2

I followed the vShield / Nexus integration whitepapers and I believe all is setup properly, however here is the issue

I created an vApp in a vCloud org with 12 VM's 2 isolated routed networks on an edge gateway. Now guests that are on the same hosts can ping each other but not other guests on another host. if guests are on the same host as the edge gateway, those guests can ping across the edge gateway as long as all the targets are on the same host.

what am I missing?