Not able to create Live Upgrade BE - from scratch

I have d0 as root and d4 as /var
d3 and d5 are /lu-root and /u-var respectively
Doing this on a M-series

bash-3.00# lucreate -m /:/dev/md/dsk/d3:ufs -m /var:/dev/md/dsk/d5:ufs -c Active -n Passive
Discovering physical storage devices
Discovering logical storage devices
Cross referencing storage devices with boot environment configurations
Determining types of file systems supported
Validating file system requests
ERROR: the file system on device </dev/md/dsk/d3> is currently mounted at </lu-root>
ERROR: device </dev/md/dsk/d3> is not available for use with mount point </>
ERROR: cannot create new boot environment using file systems as configured
ERROR: please review all file system configuration options
ERROR: cannot create new boot environment using options provided
 
bash-3.00# df -k | grep lu
/dev/md/dsk/d3****** 36149036** 35865 35751681**** 1%*** /lu-root
/dev/md/dsk/d5****** 20655025** 20505 20427970**** 1%*** /lu-var
 
bash-3.00# umount /lu-root****************************************************************************************************************************************************** << Tried unmounting the disk so as to pass the above criteria
bash-3.00# umount /lu-var
 
bash-3.00# lucreate -m /:/dev/md/dsk/d3:ufs -m /var:/dev/md/dsk/d5:ufs -c Active -n Passive
Discovering physical storage devices
Discovering logical storage devices
Cross referencing storage devices with boot environment configurations
Determining types of file systems supported
Validating file system requests
Preparing logical storage devices
Preparing physical storage devices
Configuring physical storage devices
Configuring logical storage devices
Analyzing system configuration.
No name for current boot environment.
Current boot environment is named <Active>.
Creating initial configuration for primary boot environment <Active>.
WARNING: The device </dev/md/dsk/d0> for the root file system mount point </> is not a physical device.
WARNING: The system boot prom identifies the physical device </dev/dsk/c1t5000C5001CE82C0Bd0s0> as the system boot device.
Is the physical device </dev/dsk/c1t5000C5001CE82C0Bd0s0> the boot device for the logical device </dev/md/dsk/d0>? (yes or no) yes
INFORMATION: Assuming the boot device </dev/dsk/c1t5000C5001CE82C0Bd0s0> obtained from the system boot prom is the physical boot device for logical device </dev/md/dsk/d0>.
The device </dev/dsk/c1t5000C5001CE82C0Bd0s0> is not a root device for any boot environment; cannot get BE ID.
PBE configuration successful: PBE name <Active> PBE Boot Device </dev/dsk/c1t5000C5001CE82C0Bd0s0>.
Comparing source boot environment <Active> file systems with the file
system(s) you specified for the new boot environment. Determining which
file systems should be in the new boot environment.
ERROR: The following required file systems are not mounted by the currently running OS </lu-var /lu-root>** << Fail again, this time as we unmounted the filesystem above�Is this proper?
ERROR: All required PBE file systems are not mounted.

anyone got the procedure to assist?