sd card + spi + Flash-Fs

Hi,
I am trying to interface LPC2138 with micrSD card(2-GB).
I picked up the demo code for LPC2148 based on Flash File system(since LPC2138 is almost the same as LPC2148 except for usb device peripheral).
On running the code:
I can see the menu on UART(uart is working fine).
But it gives error:
" MMC/SD card init failed.. Insert Card and press key... "

In SPI driver file SPI_LPC214x.c, its using SPI1/SSP port. As for the hardware, connections are perfect and i am able to read and write sectors from sd-card(using another sector read/write code ofcourse).

functions present in SPI_LPC214x.c are:

*----------------------------------------------------------------------------
 *      SPI Driver Functions
 *----------------------------------------------------------------------------
 *  Required functions for SPI driver module:
 *   - void spi_init     ()
 *   - void spi_ss       (U32 ss)
 *   - U8   spi_send     (U8 outb)
 *   - void spi_hi_speed (BOOL on)
 *---------------------------------------------------------------------------*/

I have even set the heap size to 0x1000 and all other configurations are correct.
Please help if i am missing something.

I am using RL-ARM v4.12 and MDK-ARM v4.21.

Regards,
Salman Liaquat.