LOGIN method does not work with cyrus-sasl

[gladius]

using cyrus sasl, and everything works, but cannot get LOGIN method to work, just fails authentication all the time. The CRAM-MD5 is working fine, so I can send mail, but no Outlook users can use it. It was compiled with --enable-login in the ./configure, so it's not that.
Any ideas gratefully accepted.

-aj

[gladius]

just an update - recompiled cyrus-sasl with mysql support and tried to use that method, once again no luck with plain or login methods.
Any mailer that uses CRAM-MD5 or similar works fine.