Our location discovery guide, linked below, has information on Locations and how they work. APs automatically discover the native VLAN (or which ever VLAN their untagged traffic will be on) by pulling DHCP. For non-native VLANs, you must create a location in vWLAN. When the AP boots up to that configuration, it will run Location Discovery. This process includes sending a DHCP request on each configured VLAN and looking for a response. If it receives a response, it will release the address and mark the location as active. Inactive locations means that Location Discovery via DHCP on those VLANs failed.
Another good reference for vWLAN documentation needs is our Bluesocket vWLAN Administrator's Guide.
If you have anymore questions, feel free to reply to this post.
Ok I'm not sure what exactly happened but I logged in remotely to the webadmin portal and the default location (not the one that I created) was active? I switched over the roles, users, ssid's, etc... off the location I used onto the default one and I'll test it when I get home but it does look good from here.