"how do you clone "default " to "node1" ? Simply doing "cp -r default node1" doest not work ."
That is how I do it. I also often do a copy-and-paste in the File Manager. You should be able to compare server/default to server/node1 and notice that they are the same. (If you were making this statement for AS 5.x then I would agree with you because the server/default/lib diretory is emtpry and it might not get copied, and not having that directory can cause problems)
Regarding the errors you are getting, how are you starting node1? What is the full command line you use? (startup-conf is not a fimiliar directory tp me, I have never seen it being created.) Please post the console output for node1 starting with the command line you entered.