SUBSCRIBE routed back to the phones

Hi guys 

 

I'm settng up a new 3820 SD for Broadworks hosted. I have enabled registration caching on the access sip-interface with public IP and  setup local policy to with two policy attributes - one for sending REGISTER/SUBSCRIBE directly to AS and second one for everything else toward NS. 

 

I can see my phone registers but its not able to do SUBSCRIBE. When the SUBSCRIBE hits the access-interface, SD just sends that back towards the phone instead of using the local-policy. I can't find what's wrong. I've attached a trace which shows SUBSCRIBE originated from 93.187.224.40 hit the SBC interface which then sent back to the phone resulting in phone getting confused (sends back 501). Anybody seen this before? It works perfectly fine when i set the line to Private insted of shared. so i guess it's something to do with line-seize event. How do we control what 'events' are