There was an issue with storage nodes in the release of 1.2.0. Would you mind upgrading to trunk and then look into the replication logs to verify that your nodes are replicating correctly. (NOTE: ALL instances of Fog should be on the same version. No if ands, or buts about it. This means nodes versions must match server version)
[url]http://fogproject.org/wiki/index.php?title=Upgrade_to_trunk[/url]