[Dovecot] Dovecot cannot find passwd-file

Posted this once before, but am still having problems. I have dovecot 1.0 rc15 running with postfix 2.3 on a SLES 10 server. With local user and /etc/passwd /pam authentication my local user can retrieve mail. I am now adding a virtual domain and have postifx relaying correctly. I want to have dovecot pull passwd and userdb from two files. When setting passwd-file to /etc/dovecot/passwd the system states that the file does not exist but it does. It does not appear to be a permissions issue; is this a path issue relative to chroot?

Would appreciate some input; I have found others with the same issues but have not seen a solution posted.

Thanks

Get your own web address. Have a HUGE year through Yahoo! Small Business.