I think Ive fixed it, but Im not sure how...
I basically looked at the diagrams at the website you refered me to, and looked at the wirting diagram of the dimmer switch instruction leaflet, and noticed the black traveller wire from switch 1 is going to the screw on the left side of the dimmer swirtch, and the red traveller wire going to the lower (silver) right screw on the dimmer switch.
Then the common stayed on the black screw on the dimmer switch.
I basically had reversed the travellers... Now its working perfectly!! The only thing is, when the dimmer switch is ON but at lowest setting (the dimmer at the lowest intensity), the lights are very faintly lighting ON..
So 2 questions:
If everything "seems" to be working properly, no heat, no noise, no flickering, can I assume all is OK and let it like that or will I burn the house down???
Whats going on with the dimmer at 0% and lights still on?