Below commit should address the problems.

http://git.fedorahosted.org/git/?p=pulp.git;a=commitdiff;h=2b56c6bd8073cdca7014bebe1024552f0ffa68b4


Problems were:
1) We weren't running the relabel.sh script for CDS installs
2) We didn't specify a context for /var/lib/pulp-cds

This will be in Pulp 0.267

build: 0.267

[root@f16-cds ~]# getenforce
Enforcing
[root@preethi ~]# pulp-admin cds list
+------------------------------------------+
                CDS Instances
+------------------------------------------+

Name                	f16-cds.usersys.redhat.com
Hostname            	f16-cds.usersys.redhat.com
Description         	None                     
Cluster             	None                     
Sync Schedule       	None                     
Repos               	spacwalk                 
Last Sync           	2012-02-21 14:08:56-05:00
Status:
   Responding       	Yes                      
   Last Heartbeat   	2012-02-21 19:23:57.187105+00:00


[root@preethi-el6-pulp ~]# cat /etc/yum.repos.d/pulp.repo #
# Pulp Repositories
# Managed by Pulp client
#

[rhel6_2]
name = rhel6_2
enabled = 1
sslverify = 0
gpgcheck = 0
baseurl = https://preethi.usersys.redhat.com/pulp/repos/content/dist/rhel/rhui/server/6/6Server/x86_64/os

[spacwalk]
name = spacwalk
enabled = 1
sslverify = 0
gpgcheck = 0
mirrorlist = file:/etc/yum.repos.d/spacwalk.mirrorlist[root@preethi-el6-pulp ~]#

[root@preethi-el6-pulp ~]# yum repolist
Loaded plugins: product-id, pulp-profile-update, security, subscription-manager
Updating certificate-based repositories.
repo id             repo name                                             status
epel                Extra Packages for Enterprise Linux 6 - x86_64        6,987
pulp-v1-testing     Pulp v1 Testing                                          20
rhel6               Red Hat Enterprise Linux 6Server - x86_64 - RHEL6     3,529
rhel6_2             rhel6_2                                               6,862
spacwalk            spacwalk                                                 85
repolist: 17,483

Pulp v1.0 is released
Closed Current Release.

Pulp v1.0 is released.