[Dovecot] Master Password not working

[Marc Perkel]

Trying to get the master password to work. What am I doing wrong? Trying 
this test:

/etc/dovecot.masterusers
master:{plain}test


auth_master_user_separator=*

auth default_with_listener {
  mechanisms = plain

  passdb passwd-file {
    # Master users that can log in as anyone
    args = /etc/dovecot.masterusers
    master = yes
    #pass =yes
  }

  passdb passwd-file {
    # Path for passwd-file
    args = /etc/vmail/shadow.%d
  }

  userdb passwd-file {
    # Path for passwd-file
    args = /etc/vmail/passwd.%d
  }

  socket listen {
    master {
      path = /var/run/dovecot/auth-master
      mode = 0666
    }
  }

}

telnet localhost imap
Trying 127.0.0.1...
Connected to localhost.ctyme.com (127.0.0.1).
Escape character is '^]'.
* OK Dovecot ready.
1 login master*marc at perkel.com test
1 NO Authentication failed.

Thanks in advance.