[c-nsp] Internal MP-BGP

[marc williams]

setup:

asr1-----asr2

both act as PE routers doing back to back BGP/VRF to customers. they also act a P routers facing each other.
Currently have an ibgp session per vrf between asr1-asr2 to learn external routes between asr's.

Moving to MP-BGP between asr1/2. mpls and ldp session active between asr1/2 via a vlan/connected /30.  
BGP VPNv4 setup and active with next hop self and update source looback0.
show ip bgp vpnv4 vrfname shows the external routes from asr1 are being learnt on asr2.

problem i have is asr2 cannot ping asr1 loopback within a vrf.  so packets to external asr1 routes get blackholed.

on asr2:
show ip bgp vpnv4 vrf name shows the route from asr1 is learnt and is preferred.
show ip route vrf name shows the route correctly with next hop of loopback of asr1
show ip cef vrf name shows the next of of the route is the connected /30
that connected /30 isnt in the cef vrf table.

My understanding is that shouldn't be an issue as we should be label switching.
Any ideas?

--
Marc