Ok, after banging my head for another day, I still can't figure out if I am doing anything wrong. I realized that I am using Qt 4.5.2 so it could very well be a bug.

In Qt 4.5.3 change log I see this

QNetworkAccessManager
* [256240] Proper handling of HTTP redirect in AlwaysCache mode.
* [257662] Fix timing issues that could trigger double sending of an
HTTP request.
Please suggest if these bugs were related to QHttp too ? Should I use QNetworkAccessManager instead with the latest version 4.5.3 ?