LinuxQuestions.org - URGENT- NTP not using PPS

I am using
Kernel :2.6.23rc2
PPS patch: ntp -pps-2.6.23rc2.diff
NTP version: ntp-4.2.4P4

I have enabled PPS support as a module.Under this I have selected PPS debugging message,UART serial support.

I am using GPS Receiver TRIMBLE ACE 3 .
PPS from GPS receiver is fed to MAX232 and output of MAX232 is fed to DCD pin of serial port.The serial port I have used is ttys3.

The relevant part of my ntp.conf is

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enable stats

statsdir /var/log

statics loopstats

logconfig = all
server 127.127.8.3 mode 138 prefer iburst
fudge 127.127.8.3 refid TSIP flag3 1 flag2 0 time1 0.042

server 127.127.1.0

fudge 127.127.1.0 stratum 10

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These are the results after about half an hour:

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ntpq -p

remote refid st t when poll reach delay offset jitter
xGENERIC(3) .TSIP. 0 1 39 64 377 0.000 -35.67 35.234

LOCAL(0) LOCAL(0) 1 20 64 377 0.000 0.000 0.004

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ntptime

ntp_gettime() returns code 0 (OK)
time CAC57B62.7EC56000,SUN, Oct 21 2007 12:56:43.265, (.265534),
maximum error 1061671us, estimated error 2us
ntp_adjtime() returns code 0 (OK)
modes 0x0 (),
offset 0.000 us, frequency -0.000 ppm, interval 1 s,
maximum error 1121063 us, estimated error 2 us,
status 0x1 (PLL),
time constant 6, precision 1.000 us, tolerance 512 ppm,

------------------------------------------------------------

Information for generic driver is coming in log file.But no info regarding PPS is coming in log file.

But if I am runing the ppstest file I can see PPS data.

What could be the possible reason for PPS not being used?

Please feel free to ask if any more details is required...