Promise-IO seq, what am I doing wrong?

This might be an awful question but I'm trying to use Promise-IO with nodeJS. I'm trying to use the seq function. I have something like the following.

seq = require("promised-io/promise").seq,

var functions= new Array(function1, function2);
seq(functions, startingDataObject)

In function1 I have something like the following.

function function1(startingDataObject) {

    var deferred = new Deferred();
    when(function3(startingDataObject),
        function (returnedData) {
            //Some logic
            deferred.resolve(returnedData);
        },
        function (err) {
            console.log(err);
            throw err;
        });
    deferred.promise;
}

What i see happening is function2 is getting fired right after deferred.promise. I'm not sure if my google skills are lacking but I don't seem to see many examples on how to use this method. So my question is how do i use Promise-IO to make sync sequential calls.

https://github.com/kriszyp/promised-io#seq

Thanks