Where did you provision your app? The Live Connect app management site or the Windows Store Dashboard? Only applications provisioned in the Windows Store dashboard can be used for Windows 8 apps - from the documentation:
I have provisioned my app in the Windows Store Dashboard. i clicked on edit in the app tile there. I clicked on the "services" tab. From there i went to live services site. There i went through all the 3 steps given there for live services.
Should i have to provide that client secret and package security identifier generated anywhere in the app package??
App secret should never be used on any client side. It is designed for server scenario, e.g. asp.net or php server.
Can you go to dashboard, then click edit on your App, then click Services tab on the left, then Live Services site, then Identifying your app, then check the data under "Set your app's identity values manually" match the Identity node in your AppManifest.xml