My problem is solved now after probing the lines, MDC was not showing any activity.
So, after explicitly setting the PD23 (MDC) to : OUTPUT/GPIO in mpc8272_ads_pins and  it worked in

I'd previously thought about that, but I was sure that this was being taken care of, but now that I'm thinking of it, I'm questioning my belief. 
I think in the fs_enet/mii-bitbang.c: mdio_dir(..) it is supposed to take care of this. But why I had to explictly set it initially beats me. I wonder how this works in standard distribution.

thanks


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