Could have corrupt ME firmware. If that is the case, the only official way to fix this is to get another BIOS chip from ASUS or RMA the board. The unoffical method is to use Coderush's ME update tool (in the motherboards>Inte section of HardOCP forums).
Finally! After reflashing with older bios (P8Z68-V-PRO-ASUS-1101 firmwire) (http://hardforum.com/showthread.php?t=1726429)
I managed to get it working!
(Updating the ME firmwire wasn't working for me. Also re-flashing latest bios version was also not working.
The solution for me was to downgrade the bios.)