Replication Fails with auto-failover?

couchbase server 2.2, java 1.4 client.

I have a 3 node cluster, and my test bucket has replication.ONE. I kill one of those, and call:
client.set(key,json, ReplicateTo.ONE);

This will fail ~%50 of the time with the following error:
Currently, there is no replica node available for the given replication index (1).

I would have assumed with auto-failover, (that once the failover kicked in), this would not occur?

Am I missing something?

Looking at the admin console, it shows ‘A server was automatically failed over’, In addition it shows the Fail Over Warning: Rebalance Required…

Also what I find weird:
The admin console has the ‘fail over’ button enabled on the node that is ‘down’, and the Remove button is grayed out. (I would have thought it we be reversed).

Thanks
Dan