Email login not working - ISPConfig 3 + Ubuntu 10.04 perfect server

[AklBlue]

Followed the instructions to set up Ubuntu 10.04 perfect server, everything seems to work fine except I cannot logon to my email accounts in either Squirellmail or other IMAP clients.. error is always: Unknown user or password incorrect.

Virual website domains get setup and work fine, so I'm assuming its not ISPConfig, or the database. ISPConfig sets up the mailbox account correctly in MYSQL, the mailbox directory is setup in /var/vmail/virtualdomain.com/user..

The new user gets the welcome email message (I can use Webmin to read it).

I'm thinking that the problem is authentication configuration for one of the email servers, but don't know where to start troubleshooting.

If anyone can help or point me in the right direction that would be greatly appreciated.?