Curious can you tell me what you have in your /usr/lib/sasl2/smtpd.conf and /etc/sysconfig/saslauthd files?
[root@server1 sasl2]# cat smtpd.conf pwcheck_method: authdaemond log_level: 3 mech_list: PLAIN LOGIN authdaemond_path:/var/spool/authdaemon/socket [root@server1 sasl2]#
and [root@server1 sysconfig]# cat saslauthd # Directory in which to place saslauthd's listening socket, pid file, and so # on. This directory must already exist. SOCKETDIR=/var/run/saslauthd # Mechanism to use when checking passwords. Run "saslauthd -v" to get a list # of which mechanism your installation was compiled with the ablity to use. MECH=pam # Additional flags to pass to saslauthd on the command line. See saslauthd(8) # for the list of accepted flags. FLAGS= [root@server1 sysconfig]#