You need to configure the NAS ip address in ACS (under network configuration) so that ACS will respond to that authentication requestes from that nas ip address. I assume that the ACS is already configured for username and password for authentication.
At this point it complains "Unknown NAS" because of NAS ip address is not configured in ACS to honour the requestes. Make sure that you enter the ip address of NAS in ACS from which NAS can reach ACS.
In addition to adding the NAS IP or if you already have that in place, also make sure you have the following command in the router, so that we know the router is going to source from the IP configured in the ACS as the NAS IP. The command in the router is:
ip tacacs source-interface fastEthernet 0/1
Replace teh "fastEthernet 0/1" with the interface you want to source the AAA request from.
OK, I also entered the command that you recommended, "ip tacacs source-interface fastEthernet 0", and added the entry on my ACS Server as a "client" under Network Configuration, and it still doesn't work... Now I get an Author Failed with a service denied....any suggestions?
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The following licenses have been activated on my router :