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Date: Tue, 08 Aug 2006 11:31:23 -0500
From: Greg Groth <ggroth@gregs-garage.com>
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Subject: Re: Postfix & SASL Authentication
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  > This is the contents of the smtpd.conf file:
> 
> ##      Global Values
> pwcheck_method: auxprop
> auxprop_plugin: sasldb
> log_level: 7
> mech_list: PLAIN LOGIN

 From postfix.org:
"This will use the Cyrus SASL password file (default: /etc/sasldb in 
version 1.5.5, or /etc/sasldb2 in version 2.1.1), which is maintained 
with the saslpasswd or saslpasswd2 command (part of the Cyrus SASL 
software). On some poorly-supported systems the saslpasswd command needs 
to be run multiple times before it stops complaining. The Postfix SMTP 
server needs read access to the sasldb file - you may have to play games 
with group access permissions. With the OTP authentication mechanism, 
the SMTP server also needs WRITE access to /etc/sasldb2 or /etc/sasldb 
(or the back end SQL database, if used). "

Have you set up the SASL password file?  If not, that's why you're 
getting the error.  If you have, what happens when you test saslauthd on 
it's own?

# /usr/local/sbin/testsaslauthd -u username -p password

It should return:

status 0: OK "Success."

If you'd rather authenticate against the exisiting system usernames & 
passwords, change your smtpd.conf file to the following:

pwcheck_method: saslauthd

and delete the rest.

You might have to restart both services if you update the smtpd.conf file:

# /usr/local/etc/rc.d/saslauthd restart
# postfix reload

Best regards,
Greg Groth