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Unable to register the consumer in NetWeaver CE 7.1

So my scenario is the following: I have set up two SAP NetWeaver CE 7.1 32-bit Workplace instances. I then want to link them together producing a federated portal, so I exchange keys and create a producer. Everything fine until I try to register the consumer.

I get the following error when registering the consumer to the producer:

Could not register your portal although access to WSDL file was successful. Possible reasons: producer server is down, network problems, or incorrect registration parameters.

The weird part here is that

1) the server is up and running, there are no firewalls nor network problems and no parameters were asked

2) I have not set a password (checked that it was empty)

3) I can successfully do the connection test,

4) I can access the WSDL file manually (for both instances) and

5) I even got the consumer listed on the My Consumers list on producer instance where its status is registered. However, in the My Producers list on consumer instance there is an icon that says the connection is not registered.

So why is the connection registered only on the other end? What causes this and is there any workarounds to fix this?

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