cyradm: Login failed: generic failure at ... Cyrus/IMAP/Admin.pm

Hi,

still having troubles with cyrus!
MAJOR PROBLEM : I cannot set up mailboxes.

Getting access to cyrus gives me:

#> cyradm --user cyrus --auth login localhost
IMAP Password:
             Login failed: generic failure at 
/usr/lib/perl/5.6.1/Cyrus/IMAP/Admin.pm line 114
cyradm: cannot authenticate to server with login as cyrus


Further information You may need:

imtest checks fails?
helium:~# imtest -u cyrus -a cyrus -p imap -m login -v localhost
S: * OK helium Cyrus IMAP4 v2.1.11 server ready
C: C01 CAPABILITY
S: * CAPABILITY IMAP4 IMAP4rev1 ACL QUOTA LITERAL+ MAILBOX-REFERRALS 
NAMESPACE UIDPLUS ID NO_ATOMIC_RENAME UNSELECT CHILDREN MULTIAPPEND SORT 
THREAD=ORDEREDSUBJECT THREAD=REFERENCES IDLE AUTH=OTP AUTH=DIGEST-MD5 
AUTH=CRAM-MD5
S: C01 OK Completed
Please enter your password:
C: L01 LOGIN cyrus {7}
S: + go ahead
C: <omitted>
S: L01 NO Login failed: generic failure
Authentication failed. generic failure
Security strength factor: 0
. logout
* BYE LOGOUT received
. OK Completed
Connection closed.

and /v/l/syslog gives:

Jan 31 14:15:01 helium imapd[20345]: badlogin: localhost[127.0.0.1] 
plaintext cyrus SASL(-1): generic failure: checkpass failed

Though I have set passwords for cyrus :

helium:~# sasldblistusers2
cyrus@helium: userPassword
cyrus@xxxxxxxxxxxxxxx: userPassword
cyrus@localhost: cmusaslsecretOTP
cyrus@helium: cmusaslsecretOTP
cyrus@xxxxxxxxxxxxxxx: cmusaslsecretOTP
cyrus@localhost: userPassword

/etc/imapd.conf:

configdirectory: /var/lib/cyrus
defaultpartition: default
partition-default: /var/spool/cyrus/mail
partition-news: /var/spool/cyrus/news
newsspool: /var/spool/news
admins: cyrus
imap_admins: cyrus
sasl_pwcheck_method: saslauthd
allowplaintext: yes
allowanonymouslogin: no
popminpoll: 1
umask: 077

PLEASE HELP!