Spring Security with Hibernate data source problem. Login doesn't respond

I have been having a problem that has troubled me for a while. Searching on this site and google hasn't yielded much help. I have already posted the problem on the spring source forum here but nobody has answered yet so I thought I might try here. You always get an answer on stackoverflow :-)

I have a custom UserDetailsService with autowired users dao bean. When I run the application in dev mode I get the login page. On login, nothing happens. Strange enough the app doesn't break or throw an error. I used some println statements to find out the farthest point the login service gets to my UserDaoImpl class on this line,

List<User> temp = getHibernateTemplate().find("select h from users h where username='" + username + "'");

it stops there, any println messages after that don't show on the console. In brief this are my configurations. If you need more details kindly look at detailed explanation I posted on spring source forum.

<http auto-config="true">
   <intercept-url pattern="/gwtsecurity/**" access="ROLE_USER"/>
   <intercept-url pattern="/gwt/**" access="ROLE_USER"/>
   <intercept-url pattern="/**/*.html" access="ROLE_USER"/>
   <intercept-url pattern="/**" access="IS_AUTHENTICATED_ANONYMOUSLY" />
   <intercept-url pattern="/login.jsp*" access="IS_AUTHENTICATED_ANONYMOUSLY"/>
   <form-login login-page="/login.jsp"/>
</http>

<beans:bean id="userDetailsService" class="com.kibyegn.server.auth.UserDetailsServiceImpl">
</beans:bean>

<beans:bean id="daoAuthenticationProvider" class="org.springframework.security.authentication.dao.DaoAuthenticationProvider">
   <beans:property name="userDetailsService" ref="userDetailsService"/>
</beans:bean>

<beans:bean id="authenticationManager" class="org.springframework.security.authentication.ProviderManager">
   <beans:property name="providers">
       <beans:list>
           <beans:ref local="daoAuthenticationProvider" />
       </beans:list>
   </beans:property>
</beans:bean>

<authentication-manager>
   <authentication-provider user-service-ref="userDetailsService">
   </authentication-provider>
</authentication-manager>

and my hibernate config file

<bean id="dataSource" class="org.springframework.jdbc.datasource.DriverManagerDataSource">
    <property name="driverClassName" value="org.postgresql.Driver" />
    <property name="url" value="jdbc:postgresql://127.0.0.1:5432/GwtApp" />
    <property name="username" value="postgres" />
    <property name="password" value="password" />
</bean>
<!-- HIBERNATE CONFIGURATION -->
<bean id="sessionFactory" class="org.springframework.orm.hibernate3.annotation.AnnotationSessionFactoryBean">
    <property name="dataSource" ref="dataSource" />
    <property name="annotatedClasses">
        <list>
            <value>com.kibyegn.client.model.User</value>
        </list>
    </property>
    <property name="hibernateProperties">
        <props>
            <prop key="hibernate.dialect">org.hibernate.dialect.PostgreSQLDialect</prop>
            <prop key="hibernate.show_sql">true</prop>
            <prop key="hibernate.hbm2ddl.auto">update</prop>
        </props>
    </property>
</bean>
<bean id="hibernateTemplate" class="org.springframework.orm.hibernate3.HibernateTemplate">
    <property name="sessionFactory" ref="sessionFactory" />
</bean>
<bean id="userDao"
    class="com.kibyegn.client.dao.UserDaoImpl"
    scope="singleton">
    <property name="hibernateTemplate" ref="hibernateTemplate" />
</bean>

<bean id="userDetailsService"
    class="com.kibyegn.server.auth.UserDetailsServiceImpl">
</bean>

Could someone please save me from my misery. Help is highly appreciated. Kibet.