Cisco Application :: Switch Is Not Able To Authenticate Itself To ACS 1121

The user "shreedhar" is getting authenticated locally and not through TACACS+ (Cisco ACS 1121 appliance running ACS 5.1).
 
In the switch, after entering credentials, the switch says, "Authentication failed - login using local mode". (Not the exact message but close enough!).
 
In ACS 5.1 -> Monitoring and Reports->Dashboard->My Favorite Reports->Authentications-TACACS+, I am getting the following error, "13011 Invalid TACACS+ request packet - possibly mismatched Shared Secrets".
 
Configuration in switch is as follows:
 
feature tacacs+
username admin password 5 $1$joEvYokP$5wZ1mtpBlxuoKMEWbFzRY1  role network-adminusername shreedhar password 5 $1$x8u5N4IR$NbVcY1u6CuoXYkMgXs60l/  role network-admin
tacacs-server key 7 "Ti!23456"ip tacacs source-interface loopback0acacs-server test username demo password demo123 idle-time 3 tacacs-server timeout 10tacacs-server deadtime 5tacacs-server host 192.168.31.11 key 7

[code]....

Is #the encrypted TACACS+ shared secret key from switch not being decrypted by ACS 5.1 as it requires a clear-text password? Could it be the reason for the above error?