[Dovecot] Authentication problems

[Rodti MacLeary]

Hi there, I'm in a bit of a dilemma and wonder if anyone can help.

Over the weekend I bought a new dedicated server and moved my mail/web over
to it.  I'd used the Sarge[1] tutorial at workaround.org for the old server
and as I'd wanted to move to Dovecot for a while I decided to use their
Etch[2] tutorial for the new one.  For the most part everything's working
nicely, but I seem to be having problems with (mostly non-SSL) SMTP
authentication.

In this install Postfix passes SASL authentication to Dovecot.  For most
clients using SSL this works fine, but as soon as SSL is off it fails. 
This is despite having disable_plaintext_auth set to 'no'.  Furthermore it
appears that some clients w/SSL are also failing.  Outlook being the major
culprit.  I'm completely stumped.

I've pasted a copy of the output from dovecot -n below.

Thanks in advance!

Rodti

[1] http://workaround.org/articles/ispmail-sarge
[2] http://workaround.org/articles/ispmail-etch
---------------------------------------------
# 1.0.13: /etc/dovecot/dovecot.conf
log_timestamp: %Y-%m-%d %H:%M:%S
protocols: imap imaps pop3 pop3s
disable_plaintext_auth: no
login_dir: /var/run/dovecot/login
login_executable(default): /usr/lib/dovecot/imap-login
login_executable(imap): /usr/lib/dovecot/imap-login
login_executable(pop3): /usr/lib/dovecot/pop3-login
mail_privileged_group: mail
mail_location: maildir:/home/vmail/%d/%n/Maildir
mail_executable(default): /usr/lib/dovecot/imap
mail_executable(imap): /usr/lib/dovecot/imap
mail_executable(pop3): /usr/lib/dovecot/pop3
mail_plugin_dir(default): /usr/lib/dovecot/modules/imap
mail_plugin_dir(imap): /usr/lib/dovecot/modules/imap
mail_plugin_dir(pop3): /usr/lib/dovecot/modules/pop3
pop3_uidl_format(default):
pop3_uidl_format(imap):
pop3_uidl_format(pop3): %08Xu%08Xv
namespace:
  type: private
  separator: .
  prefix: INBOX.
  inbox: yes
auth default:
  mechanisms: plain login cram-md5
  passdb:
    driver: sql
    args: /etc/dovecot/dovecot-sql.conf
  userdb:
    driver: passwd
  userdb:
    driver: static
    args: uid=5000 gid=5000 home=/home/vmail/%d/%n allow_all_users=yes
  socket:
    type: listen
    client:
      path: /var/spool/postfix/private/auth
      mode: 432
      user: postfix
      group: postfix
    master:
      path: /var/run/dovecot/auth-master
      mode: 384
      user: vmail