couchdb user creation problems on 1.2

gistfile1.js

//create a server admin in futon {name:"paul",password:"password"} via futon
//delete _users database
$.couch.signup({name:"admin"},"1")
//set _users security members names = ["admin"] via futon
//logout via futon
//login via futon as 'admin'
$.couch.signup({name:"user1"},"password",{success:function(){console.log(arguments)},error:function(){console.log(arguments)}})

//console output:
//PUT http://localhost:5984/_users/org.couchdb.user%3Auser1 404 (Object Not Found)
//XHR finished loading: "http://localhost:5984/_users/org.couchdb.user%3Auser1".
[404, "not_found", "missing"]