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Syntax changes from 0.99 to 1.x in the /etc/dovecot/dovecot.conf file. You'll need to comment out:
auth = default auth_userdb = passwd auth_passdb = pam
and replace them with:
auth default { mechanisms = plain userdb passwd { } passdb pam { args = session=yes * args = * }
user = root }
That got dovecot working again for me. Prior to that it wouldn't start with error messages about "Unknown settings".
Hope this saves someone a headache.