User Error during memcached integration

Hello, I hope all is well. I am hoping someone can help me with a
problem that I am certain is user error?

The configuration details below work in all my other environments
including integration, development and qa. However, the production
servers give the following error:
unable to find server during initialization.

When I telnet to the memcached box from the server having the problem
and run 'stats', I get

STAT pid 16136
STAT uptime 7398638
STAT time 1275059978
STAT version 1.2.8
STAT pointer_size 64
STAT rusage_user 7.085922
STAT rusage_system 13.275981
STAT curr_items 10878
STAT total_items 11441
STAT bytes 2020180
STAT curr_connections 5
STAT total_connections 306
STAT connection_structures 11
STAT cmd_flush 0
STAT cmd_get 457326
STAT cmd_set 11441
STAT get_hits 412184
STAT get_misses 45142
STAT evictions 0
STAT bytes_read 22600329
STAT bytes_written 53036649
STAT limit_maxbytes 30064771072
STAT threads 5
STAT accepting_conns 1
STAT listen_disabled_num 0

Below are the configuration details and stacktrace:
config/environment.rb (the important parts)