[Yaffs] yaffs chunk n was not erased

Hi All,

        Have got yaffs running on a 2.6.8-1 kernel , It mounts
perfectly but when i try to copy a file or write a file to the mounted
partion it gives a lot of

**>>yaffs chunk 1 was not erased
...................
**>> yaffs chunk 32567 was not erased
**>> yaffs chunk 32568 was not erased
**>> yaffs chunk 32569 was not erased
**>> yaffs chunk 32570 was not erased
**>> yaffs chunk 32571 was not erased
**>> yaffs chunk 32572 was not erased
**>> yaffs chunk 32573 was not erased
**>> yaffs chunk 32574 was not erased
**>> yaffs chunk 32575 was not erased
**>> Block 1017 retired
**>> yaffs write required 32544 attempts
cp: unable to open `/mnt/yaffs/startup': Cannot allocate memory

and df will show me full usage 
Filesystem           1k-blocks      Used Available Use% Mounted on
rootfs                   31488      8944     22544  28% /
/dev/mtdblock2           31488      8944     22544  28% /
/dev/mtdblock3           16368     16368         0 100% /mnt/yaffs

after the failed attemp to copy.
I have tried enabling and disabling both IGNORE_CHUNK_ERASED =
-DCONFIG_YAFFS_DISABLE_CHUNK_ERASED_CHECK in the Makefile but to no
avail.

I am erasing the nand device like this
[root@manav /root]#./mkyaffs /dev/mtd3
Erasing and programming NAND
Erasing block at 0x080
Block at 0x084000 is damaged and is not being formatted
Erasingnand_erase: attempt to erase a bad block at page 0x00000060
block at 0x088000
Erasing block at 0x08c000

MTD Erase failure
: Input/output error

Any clues or suggestions are welcome ?

regards,
Manav