[exim] SMTP Authentication Fails, expanded string:false

Hi,

I had set up successfully exim on a test server, smtp authentication and the
like worked great.

So in migrating from the test server to a would be production server, all
works well except smtp authentication.

I md5summed all the relevant config files for both servers and they appear
to match.

To test authentication, I used 'exim -bh 127.0.0.1' and this is the output I
got for the problem machine:

>>> courier_plain authenticator:
> >>> $auth1 =
> >>> $auth2 = smtp
> >>> $auth3 = password
> >>> $1 =
> >>> $2 = smtp
> >>> $3 = password
> >>> expanded string: false
> 535 Incorrect authentication data
> LOG: [2215] courier_plain authenticator failed for localhost ()
> [127.0.0.1]: 535 Incorrect authentication data (set_id=smtp)
>

I did the same thing on the test server and got:

>>> courier_plain authenticator:
> >>> $auth1 =
> >>> $auth2 = smtp
> >>> $auth3 = password
> >>> $1 =
> >>> $2 = smtp
> >>> $3 = password
> >>> expanded string: true
> 235 Authentication succeeded
>

So it appears "expanded string" is what is causing the failure, but I do not
know which string is failing to expand...

Here is the courier_plain config:

courier_plain:

>     driver = plaintext
>     public_name = PLAIN
>     server_prompts = :
>     server_condition = ${if and{{!match {$auth2}{\N[/]\N}}{eq{${if match
> {$auth2}{\N[+%:@]\N}{${lookup{${extract{2}{+%:@}{$auth2}}}lsearch{/etc/demodomains}{yes}}}{${lookup{$auth2}lsearch{/etc/demousers}{yes}}}}}{}}{!eq{${extract{address}{${readsocket{/var/spool/authdaemon/socket}{AUTH
> ${strlen:exim\{$sender_host_address\|$received_ip_address\}\nlogin\n$auth2\n$auth3\n}\nexim\{$sender_host_address\|$received_ip_address\}\nlogin\n$auth2\n$auth3\n}}}}}{}}}{true}{false}}
>     server_set_id = $auth2

>

Any ideas?

Thank you!