Hi, Gary-
This looks like a config problem, and not a code problem yet.  Could you send the output of mx_info from node-1 and from node-2?  Also, forgive me counter-asking a possibly dumb OMPI question, but is "-x LD_LIBRARY_PATH" really what you want, as opposed to "-x LD_LIBRARY_PATH=${LD_LIBRARY_PATH}" ?  (I would not be surprised if not specifying a value defaults to this behavior, but have to ask).
Also, have you tried MX MTL as opposed to BTL?  --mca pml cm --mca mtl mx,self  (it looks like you did)
"[node-2:10464] mx_connect fail for node-2:0 with key aaaaffff " makes it look like your fabric may not be fully mapped or that you may have a down link.
Myricom, Inc.

I was initially using 1.1.2 and moved to 1.2b2 because of a hang on MPI_Bcast() which 1.2b2 reports to fix, and seemed to have done so. My compute nodes are 2 dual core xeons on myrinet with mx. The problem is trying to get ompi running on mx only. My machine file is as follows

node-1 slots=4 max-slots=4
node-2 slots=4 max-slots=4
node-3 slots=4 max-slots=4

'mpirun' with the minimum number of processes in order to get the error ...
        mpirun --prefix /usr/local/openmpi-1.2b2 -x LD_LIBRARY_PATH --hostfile ./h1-3 -np 2 --mca btl mx,self ./cpi

I don't believe there'a anything wrong w/ the hardware as I can ping on mx between this failed node and the master fine. So I tried a different set of 3 nodes and I got the same error, it always fails on the 2nd node of any group of nodes I choose.