Hi Chandra,
I haven't seen this problem before, but here are some suggestions for debugging:
1. Your cluster has two slave nodes, what is your dfs.replication setting (it defaults to 3)?
2. Check for errors in the log files.
3. Use 'whoami' to verify that you are indeed root. Create a brand new file, test.txt. Create a new directory, testdir, in HDFS.
Are you able to 'put' that file to testdir and verify that it's there? Check the log files for errors if it didn't work.