sasl login authentication failed generic failure

[kibirango moses]

Hullo Users,
I setting up a mailserver with smtp authentication and the backend
database is mysql 5.1.53 with pam_mysql and cyrus-sasl2 2.1.23 on
slackware linux 13.1.When i telnet to test my server side
authenication it gives me the error
below:
May 31 10:26:24 xxxxx postfix/smtpd[1475]: xsasl_cyrus_server_next:
decoded response:
May 31 10:26:24 xxxxx postfix/smtpd[1475]: warning: SASL
authentication failure: All-whitespace username.
May 31 10:26:24 xxxxx postfix/smtpd[1475]: warning:
localhost[127.0.0.1]: SASL LOGIN authentication failed: generic
failure
May 31 10:26:24 xxxxx postfix/smtpd[1475]: > localhost[127.0.0.1]: 535
5.7.8 Error: authentication failed: generic failure.
on doing a testsaslauthd :

#testsaslauthd -u xx at xxxx.xx.xx.xx  -p xxxxxx  -f
/var/state/saslauthd/mux -s smtp
0: OK "Success."

When i do a Check for  server-side SMTP AUTH configuration.
 I get the output below:
#saslfinger -s
-- content of /usr/lib64/sasl2/smtpd.conf --
#Global Parameters
log_level: 7
allow_plaintext: true
#pwcheck_method: saslauthd
pwcheck_method: auxprop
auxprop_plugin: mysql
mech_list: plain login
sql_engine: mysql
sql_database: postfix
sql_user: --- replaced ---
sql_hostnames:127.0.0.1
sql_passwd: --- replaced ---
sql_select: select password from mailbox where username='%u' AND active ='1'
#sql_select: select password from mailbox where username='%u@%r' AND active ='1'
# --------- saslauthd parameters-------------#
saslauthd_path : /var/state/saslauthd/mux
#saslauthd_path : /var/state/saslauthd

-- content of /usr/local/lib/sasl2/smtpd.conf --
#Global Parameters
log_level: 7
allow_plaintext: true
#pwcheck_method: saslauthd
pwcheck_method: auxprop
auxprop_plugin: mysql
mech_list: plain login
sql_engine: mysql
sql_database: postfix
sql_user: --- replaced ---
sql_hostnames:127.0.0.1
sql_passwd: --- replaced ---
sql_select: select password from mailbox where username='%u' AND active ='1'
#sql_select: select password from mailbox where username='%u@%r' AND active ='1'
# --------- saslauthd parameters-------------#
saslauthd_path : /var/state/saslauthd/mux
#saslauthd_path : /var/state/saslauthd


-- active services in /etc/postfix/master.cf --
# service type  private unpriv  chroot  wakeup  maxproc command + args
#               (yes)   (yes)   (yes)   (never) (100)
smtp      inet  n       -       n       -       -       smtpd -v
pickup    fifo  n       -       n       60      1       pickup
cleanup   unix  n       -       n       -       0       cleanup
qmgr      fifo  n       -       n       300     1       qmgr
tlsmgr    unix  -       -       n       1000?   1       tlsmgr
rewrite   unix  -       -       n       -       -       trivial-rewrite
bounce    unix  -       -       n       -       0       bounce
defer     unix  -       -       n       -       0       bounce
trace     unix  -       -       n       -       0       bounce
verify    unix  -       -       n       -       1       verify
flush     unix  n       -       n       1000?   0       flush
proxymap  unix  -       -       n       -       -       proxymap
proxywrite unix -       -       n       -       1       proxymap
smtp      unix  -       -       n       -       -       smtp
relay     unix  -       -       n       -       -       smtp
        -o smtp_fallback_relay=
showq     unix  n       -       n       -       -       showq
error     unix  -       -       n       -       -       error
retry     unix  -       -       n       -       -       error
discard   unix  -       -       n       -       -       discard
local     unix  -       n       n       -       -       local
virtual   unix  -       n       n       -       -       virtual
lmtp      unix  -       -       n       -       -       lmtp
anvil     unix  -       -       n       -       1       anvil
scache    unix  -       -       n       -       1       scache
maildrop  unix  -       n       n       -       -       pipe
  flags=ODRhu user=popmail:popmail argv=/usr/bin/maildrop -w 90 -d
${user}@${nexthop}
   ${extension} ${recipient} ${user} ${nexthop}
cyrus     unix  -       n       n       -       -       pipe
  user=cyrus argv=/cyrus/bin/deliver -e -r ${sender} -m ${extension} ${user}
old-cyrus unix  -       n       n       -       -       pipe
  flags=R user=cyrus argv=/cyrus/bin/deliver -e -m ${extension} ${user}

-- mechanisms on localhost --
250-AUTH PLAIN LOGIN
250-AUTH=PLAIN LOGIN


-- end of saslfinger output --

Fellow users how can i fix this.All advice is highly welocme.

Thanx in advance