TheGoldMineGuru is right that you have to configure DEP. In my case it was already configured.
So, why it was not working in my case. There will be a kbase out on this in couple of days.
Here is the scenario, we are using BOE XI MLB (Multiple Language Build). In this build, for CacheServer.exe which is supposed to be in win32_x86, is available in win32_x86/win32_x86. This means before applying SP1, move copy of this file to root win32_x86 and then run the SP1. It should work fine now. This is the reason I was not able to see Cache Server while adding a new server.
why would they have win32_x86/win32_x86 with only one file cacheserver.exe in it.............Interesting huh.....