Problem logging in during testing

[Steve Matzura]

Instructions at http://wiki2.dovecot.org/BasicConfiguration say the
next thing to test after getting IMAP and Telnet working is to create
a dummy user file with the following command:

echo "$USER:{PLAIN}password:$UID:$GID::$HOME" > users

And place it in /etc/dovecot and protect it appropriately. It was also
edited to change the plain-text password from `password' to what it
really is.

The next section describes changes to 10-auth.conf and other things:

If you used the example configuration files, switch to passwd-file by
modifying conf.d/10-auth.conf: 

# Add '#' to comment out the system user login for now:
#!include auth-system.conf.ext
# Remove '#' to use passwd-file:
!include auth-passwdfile.conf.ext

In conf.d/auth-passwdfile.conf.ext you should have: 

passdb {
  driver = passwd-file
  args = scheme=CRYPT username_format=%u /etc/dovecot/users
}
userdb {
  driver = passwd-file
  args = username_format=%u /etc/dovecot/users
}

Verify with doveconf -n passdb userdb that the output looks like above
(and there are no other passdbs or userdbs). 

All done successfully.

Now, when I telnet 127.0.0.1 143 and attempt to log in with the
string:

a login <any username> <any password>

whether it's one in my users file or not, I get:

a NO [AUTHENTICATIONFAILED] Authentication failed.