Hi Balaji,
About the third point, in the last column of the note browser, make sure that the "user name" is the user you are logged on with (the user you are trying to process the note with).
This way you can make sure someone else hasn't tried to process the note before you and is locking it in their worklist. If the processor is NOT you, change it or remove it from the worklist of the other user.
Cheers,
Amerjit