[Dovecot] Can't get dovecot to see email folders

[Blaster]

  So I'm very frustrated, I've spent the better part of a day trying to 
get dovecot 2.0.1 working...Most of the documentation on the Wiki seems 
to think you are running an older version and therefore very little of 
it applies.

I'm running 2.0.1 on OpenSolaris.

I seem to have 2 remaining issues:

1) Dovecot is not able to determine the home directory
2) IMAP clients can not get to the mail folder directory.  One client is 
reporting that it can't open it in read only
mode.
3) I tried to get raw logging working, but apparently I couldn't because 
of #1.

The architecture of Dovecot makes it difficult to transition from 
another IMAP server.   If I force the MBOX to be /home/%u/mail, all of 
my clients think the folders are in /home/%u/mail/mail.  If I set mbox 
location to /home/%u, then dovecot tries to create .subscription and 
.imap files/directories in the users home dir which it doesn't have 
permission to do.  It would be nice if you could configure Dovecot in 
such a way as to make transition easier, such as the ability to strip 
off a duplicate trailing path, ie /home/%u/mail/mail becomes 
/home/%u/mail....Otherwise this necessitates visiting countless IMAP 
clients for reconfiguration...

Here is my config file:
  /opt/sbin/dovecot -n
# 2.0.1: /opt/etc/dovecot/dovecot.conf
# OS: SunOS 5.11 i86pc
base_dir = /var/run/dovecot/
mail_debug = yes
mail_gid = mail
mail_location = mbox:/home/%u/mail:INBOX=/var/mail/%u
mail_privileged_group = mail
mail_uid = dovecot
passdb {
   driver = pam
}
plugin {
   home = /home/%u
}
service imap-login {
   inet_listener imap {
     port = 143
   }
   inet_listener imaps {
     address = *
     port = 993
   }
}
service pop3-login {
   inet_listener pop3 {
     address = *
     port = 0
   }
   inet_listener pop3s {
     address = *
     port = 0
   }
}
ssl_cert = </usr/local/ssl/certs/dovecot.pem
ssl_key = </usr/local/ssl/private/dovecot.pem
gremlin [/opt/bin] #
gremlin [/opt/bin] #