Hi Luke,
Thanks for your suggestion. My filter was not actually handling the url....
I added the following line to my filter bean and now it works.
Code:
<property name="filterProcessesUrl" value="/loginURL"></property>
My filter bean now looks like
Code:
<bean id="authenticationProcessingFilter" class="com.myapp.authentication.CustomAuthenticationProcessingFilter">
<security:custom-filter position="AUTHENTICATION_PROCESSING_FILTER" />
<property name="defaultTargetUrl" value="/general/home" />
<property name="authenticationManager" ref="authenticationManager" />
<property name="filterProcessesUrl" value="/loginURL"></property>
</bean>
Also in my AuthenticationProcessingFilter I am overriding determineTargetUrl method to redirect to the referer.... 
however.... if i remove "ROLE_USER" from my security:http intercept-url element it doesnt work.