@Rahul,
The APs are not powering up, that is the issue. I am using POE enabled switches to power these devices. Not external power.
@Hensley
Thank you for the information. I shall test this as well. It seems to only be on the 5406 module. I can power them on a 3500yl, 2910, 2620 and 2610 with no issues. I wonder if its a FW bug on the 5406 module.
Quick question though, are you using a POE injector and then switching the cable over to the switch or are you leaving the cable plugged in on the POE port with POE enabled on the switch port and then using an external power supply? Only reason I ask is the difficulty in getting an external power supply to an AP in the ceiling.