I am trying to do authentication with /etc/passwd and something is not working right for me. Pls help!

When i try to authenticate via pop3, I get: -ERR Authentication failed.

In the logs, I get: May 21 11:14:07 Info: auth(default): client in: AUTH 1 PLAIN service=pop3 secured lip=127.0.0.1 rip=127.0.0.1 lport=110 rport=32774 resp=AGp1bmUAU0lORzNlcnQ= May 21 11:14:07 Info: auth(default): passwd(test1,127.0.0.1): lookup May 21 11:14:07 Info: auth(default): passwd(test1,127.0.0.1): Password mismatch May 21 11:14:07 Info: auth(default): passwd(test1,127.0.0.1): CRYPT(password) != 'x' May 21 11:14:09 Info: auth(default): client out: FAIL 1 user=test1 May 21 11:14:17 Info: pop3-login: Disconnected (auth failed, 1 attempts): user=<test1>, method=PLAIN, rip=127.0.0.1, lip=127.0.0.1, secured

dovecot -n:

Warning: fd limit 256 is lower than what Dovecot can use under full load (more than 768). Either grow the limit or change login_max_processes_count and max_mail_processes settings # OS: SunOS 5.10 sun4u info_log_path: /var/log/dovecot.log protocols: imap pop3 listen(default): 127.0.0.1:143 listen(imap): 127.0.0.1:143 listen(pop3): * ssl_disable: yes disable_plaintext_auth: no login_dir: /usr/local/var/run/dovecot/login login_executable(default): /usr/local/libexec/dovecot/imap-login login_executable(imap): /usr/local/libexec/dovecot/imap-login login_executable(pop3): /usr/local/libexec/dovecot/pop3-login login_greeting: IMAP ready. login_processes_count: 2 mail_debug: yes mail_executable(default): /usr/local/libexec/dovecot/imap mail_executable(imap): /usr/local/libexec/dovecot/imap mail_executable(pop3): /usr/local/libexec/dovecot/pop3 mail_plugin_dir(default): /usr/local/lib/dovecot/imap mail_plugin_dir(imap): /usr/local/lib/dovecot/imap mail_plugin_dir(pop3): /usr/local/lib/dovecot/pop3 namespace: type: private separator: . prefix: INBOX. inbox: yes list: yes subscriptions: yes auth default: verbose: yes debug: yes debug_passwords: yes passdb: driver: passwd userdb: driver: passwd args: blocking=yes