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you need to upgrade to 7.0 first, then step up to 7.4 - depending on the access points in your enviroment you may want to stay away from 7.4bug CSCud97983http://tools.cisco.com/Support/BugToolKit/search/getBugDetails.do?method=fetchBugDetails&bugId=C...
Had the same issue, I was running the 1.2 small OVA, about 100 aps and 2 5508s - TAC recommended blowing it away and using the 1.3 medium OVA - everything seems to be working great now.
