@Jan-Gatzke Thanks for the pointer. I will try that.

I think the reason is lack of understanding. After reading sea of information I am able to pull together the basic architecture of how this would work.

Thanks @TimO .

I have been trying to make and load that driver but cannot get hands on 3.12.28+ kernel source. It wont compile without it.

I am wondering how come no body has come accross this issue, I bought my Arduino Nano from one of the links on mysensors store.

http://www.aliexpress.com/item/1-pcs-for-Nano-V3-0-ATmega328P-Module-Board-Free-Mini-USB-Cable-for-Arduino-Compatible/1397847851.html?aff_platform=aaf&sk=3jYZr3nAE%3A&aff_trace_key=23901740799811215&cpt=1431974332161

I am having trouble getting Arduino Nano detected by Raspberry Pi via USB.

I could see this in the monitor when I selected the correct baudrate:

 0;0;3;0;14;Gateway startup complete.

[151199.509040] usb 1-1.2: new full-speed USB device number 5 using dwc_otg
[151199.612259] usb 1-1.2: New USB device found, idVendor=1a86, idProduct=7523
[151199.612296] usb 1-1.2: New USB device strings: Mfr=0, Product=2,
SerialNumber=0
[151199.612314] usb 1-1.2: Product: USB2.0-Serial
[153464.158413] usb 1-1.2: USB disconnect, device number 5
[153715.311307] usb 1-1.3: new full-speed USB device number 6 using dwc_otg
[153715.414679] usb 1-1.3: New USB device found, idVendor=1a86, idProduct=7523
[153715.414717] usb 1-1.3: New USB device strings: Mfr=0, Product=2,
SerialNumber=0
[153715.414733] usb 1-1.3: Product: USB2.0-Serial

Initially while flashing serial gateway sketch to nano from Mac I had some trouble to get the right drivers. After following this post it worked fine. Is this to do with chinese knock offs?
http://kiguino.moos.io/2014/12/31/how-to-use-arduino-nano-mini-pro-with-CH340G-on-mac-osx-yosemite.html

Also I installed Arduino sketch on Raspberry pi with apt-get install arduino: When I launch Arduino and go to Tools>Port is disabled.

Is there anything I need to do on RPi so it can detect Arduino Nano knock pff?