Need help with NO AUTH configuration problem

[Flash Love]

I am running saslauthd 2.1.20 with authentication mechanisms: getpwent 
kerberos5 pam rimap shadow ldap

When I telnet to example.com on port 25 this is what the session looks like:

telnet mail.example.com 25
Connected to mail.example.com (x.xxx.xxx.x).
Escape character is '^]'.
220 mail.example.com ESMTP Postfix
EHLO mail.example.com
250-mail.example.com
250-PIPELINING
250-SIZE 10240000
250-ETRN
250-STARTTLS
250 8BITMIME
quit
221 Bye

=======================
imtest
=======================
imtest -m login -a cyrus localhost
S: * OK mail.example.com Cyrus IMAP4 v2.2.12-Invoca-RPM-2.2.12-6.fc4 server 
ready
C: C01 CAPABILITY
S: * CAPABILITY IMAP4 IMAP4rev1 ACL QUOTA LITERAL+ MAILBOX-REFERRALS NAMESPACE 
UIDPLUS ID NO_ATOMIC_RENAME UNSELECT CHILDREN MULTIAPPEND BINARY SORT 
THREAD=ORDEREDSUBJECT THREAD=REFERENCES ANNOTATEMORE IDLE LISTEXT 
LIST-SUBSCRIBED X-NETSCAPE
S: C01 OK Completed
Please enter your password:
C: L01 LOGIN cyrus {9}
S: + go ahead
C: <omitted>
S: L01 OK User logged in
Authenticated.
Security strength factor: 0
 logout
* BYE LOGOUT received
 OK Completed

=================
software
=================
cyrus-sasl-2.1.20-5
postfix-2.2.2-2.mysql.sasl2.fc4
cyrus-sasl-plain-2.1.20-5
cyrus-sasl-sql-2.1.20-5
cyrus-sasl-md5-2.1.20-5
cyrus-sasl-devel-2.1.20-5
cyrus-imapd-murder-2.2.12-6.fc4
cyrus-imapd-2.2.12-6.fc4
cyrus-imapd-devel-2.2.12-6.fc4
cyrus-imapd-utils-2.2.12-6.fc4
==========================
/etc/sysconfig/saslauthd
==========================
# Directory in which to place saslauthd's listening socket, pid file, and so
# on.  This directory must already exist.
SOCKETDIR=/var/run/saslauthd
# Mechanism to use when checking passwords.  Run "saslauthd -v" to get a list
# of which mechanism your installation was compiled to use.
MECH=pam
# Additional flags to pass to saslauthd on the command line.  See saslauthd(8)
# for the list of accepted flags.
FLAGS='-n0 -s 2048 -t 3600 -c -r'
=============================
/usr/lib/sasl2/smtpd.conf
=============================
# This sets smtpd to authenticate using the saslauthd daemon.
# This allows only plain and login as the authentication mechanisms.
mech_list: LOGIN PLAIN
pwcheck_method: saslauthd
log_level: 7
============================
/etc/imapd.conf
============================
postmaster: postmaster
configdirectory: /var/lib/imap
partition-default: /var/spool/imap
allowanonymouslogin: no
allowplaintext: yes
autocreatequota: 10000
drachost: localhost
dracinterval: 0
hashimapspool: true
poptimeout: 10
quotawarn: 90
reject8bit: no
sasl_pwcheck_method: pam 
sasl_auxprop_plugin: mysql
sasl_mech_list: PLAIN LOGIN
sasl_sql_engine: mysql
sasl_sql_user: mail
sasl_sql_passwd: password
sasl_sql_hostnames: localhost
sasl_sql_database: mail
sasl_sql_statement: SELECT password FROM accountuser WHERE username = '%u@%r' 
OR (username = '%u' AND domain_name = '')
sasl_sql_verbose: true
sasl_saslauthd_path: /var/run/saslauthd/mux
sendmail: /usr/sbin/sendmail
servername: example.com
sievedir: /var/lib/imap/sieve
sieve_maxscripts: 5
sieve_maxscriptsize: 32
timeout: 30
tls_ca_file: /var/imapd/mail.example.key-cert.pem
tls_cert_file: /var/imapd/cert.pem
tls_key_file: /var/imapd/mail.example.key-cert.pem

What have I missed to be absent: mech_list: LOGIN PLAIN ?

Thanks
Flash