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Howdy,
You may want to verify that the saslauthd service is running.
You can do that by running this command:
service saslauthd restart
After that, does it work properly for you?
-Eric
Yes, that was it.
Odd, I've never had to do that, even with exact same setups, for some reason it just didn't get started I guess. I have never had to deal with that so I didn't know I could just restart it - Thanks!