BIND9 2 BIND9 transfer fails with TSIG with chroot

Hello all,
I have a master and slave named server running BIND 9.2.2. I recently
changed them to use chroot. When they do a transfer with a TSIG key
they fail with the error below. When I do allow-transfer{any;}; it
works fine. When creating my chroot I copied over all the file
including the key that I am including and do not get any errors when
loading bind. I checked the key files and made sure they were the same
by scp'ing it over. BTW this same setup worked fine with these keys
prior to using chroot. At first I was getting some other errors until I
created a random entry (which could be my problem) with the commands
below in my chroot's dev folder.
Any help would be appreciated....

error on slave when key is used:
"failed while receiving responses: REFUSED"

on my master when key is used:
zone transfer 'xxxxxx/IN' denied

creating random in dev:
mknod random c 2 3

looks like
crw-rw-rw- 1 root root 2, 3 aug 11 17:09 random