[Exim] smtp auth

Hi. I am trying to setup SMTP authentication. but ran into some problems.

Ive compiled 3.21 with both PLAIN and MD5 auth. I am using mysql as db with
users and passwords. so these are entries in my config:
plain:
  driver = plaintext
  public_name = PLAIN
  server_condition = "${if and { \
                        {!eq{$2}{}} \
                        {!eq{$3}{}} \
                        {crypteq{$3}{${lookup mysql{SELECT password FROM
users WHERE user='$2'}{$value}fail}}} \
                        } {yes}{no}}"
  server_set_id = $2

login:
  driver = plaintext
  public_name = LOGIN
  server_prompts = "Username:: : Password::"
  server_condition = "${if and { \
                        {!eq{$1}{}} \
                        {!eq{$2}{}} \
                        {crypteq{$2}{${lookup mysql{SELECT password FROM
users WHERE user='$1'}{$value}fail}}} \
                        } {yes}{no}}"
  server_set_id = $1

if I only have PLAIN than neither Outlook, nor Netscape , nor TheBat can
detect AUTH method. OE doesnt even try (as i can see in log), TheBat says it
couldnt detect any AUTH methods. if I add LOGIN than i get this error with
Outlook:
2001-01-15 21:47:53 Authentication failed for (shark) [192.168.0.1]: 535
Incorrect authentication data
or sometimes this error ( i dont know under which conditions, it seems to be
random) :
2001-01-15 21:49:14 Authentication failed for (shark) [192.168.0.1]: 435
Unable to authenticate at present: "lookup" failed and "fail" requested

the rest of config works fine with all mysql settings.
any ideas how to fix my problems?