Converting Master to slave in M <- S1/M <-S2 configuration

[Pushkar Marathe]

Hi this is Pushkar,
the Operating system i am operating on is :CentOS 5.5
the mysql version i am running is : mysql-5.1.46

I had a configuration like
Master <- slave1
^
|
Slave2

I updated my.cnf on slave 1 to "log-slave updates = true" and then change master on slave 3 so that my new config looks like following:

Master <- Slave1 <- Slave2

now i want Slave1 to be the master and master to be the new slave.
so what i did was:
- i took dump on slave1 after reset master which gives me new log file and position.
- I then deleted all the data n master... loaded the dump and changed master to slave 1.
- after this I observed that the old master did not replicate everything from the slave 1.
- It missed all the records from when i stoped the master and issued the change master command....
- after this if i add queries into database on slave 1 it replicates on both master and slave but i am missing the record in between

AM I missing something as i dont undersand what is going wrong as logically everything looks fine.

thanx in advance!!