SMTP AUTH for Postfix

2. Added the following lines to the end of my /etc/postfix/main.cf file:
#BEGIN SASL config for SMTP AUTH
smtpd_sasl_auth_enable = yes
smtpd_sasl_security_options = noanonymous
broken_sasl_auth_clients = yes
#next line looks stupid to keep as a NULL value,
#but is apparently important for sasl to work properly from
#my research. LOADS of stock documentation in /usr/share/doc/postfix/*
#and other websites incorrectly suggest (for this version of
#postfix atleast):smtpd_sasl_local_domain =$myhostname
smtpd_sasl_local_domain =
smtpd_recipient_restrictions = permit_sasl_authenticated, permit_mynetworks, check_relay_domains
#END SASL config for SMTP AUTH

3. Goto /etc/pam.d and created a cyrus file from a copy of my imap file with the following text:
#%PAM-1.0 Sasl for Postfix SMTP AUTH
auth required pam_stack.so service=system-auth
account required pam_stack.so service=system-auth

4. Restart the Postfix and saslauthd daemons:
/etc/init.d/saslauthd restart
/etc/init.d/postfix restart

5. Review the fairly detailed documentation from the following site to test if your authentication works, specifically Section 12.4:
http://postfix.state-of-mind.de/patrick.koetter/smtpauth/smtp_auth_mailclients.html 

(Arguably one of the best overall sites on SMTP AUTH for Postfix, but proved unsuccessful in FC1).

FYI: use the perl command below instead of the printf statement to get your base64 encoding:
perl -MMIME::Base64 -e 'print encode_base64("username\0username\0password");'

6. Review other documentation of website in #5 for some other config tweaks and how to setup mail clients like Outlook Express to authenticate using SMTP AUTH.

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P.S. Here is the output from a "postconf -n" to see all non-default settings in my main.cf file incase it matters

alias_database = hash:/etc/postfix/aliases
alias_maps = hash:/etc/postfix/aliases
broken_sasl_auth_clients = yes
command_directory = /usr/sbin
config_directory = /etc/postfix
content_filter = smtp-amavis:[127.0.0.1]:10024
daemon_directory = /usr/libexec/postfix
debug_peer_level = 2
inet_interfaces = all
mail_owner = postfix
mailbox_command = /usr/bin/procmail
mailq_path = /usr/bin/mailq.postfix
manpage_directory = /usr/share/man
max_use = 10
mydestination = $myhostname, localhost.$mydomain
myhostname = YOURDOMAIN.COM
mynetworks = 192.168.0.0/24, 127.0.0.0/8
mynetworks_style = subnet
newaliases_path = /usr/bin/newaliases.postfix
queue_directory = /var/spool/postfix
readme_directory = /usr/share/doc/postfix-2.0.11/README_FILES
sample_directory = /usr/share/doc/postfix-2.0.11/samples
sendmail_path = /usr/sbin/sendmail.postfix
setgid_group = postdrop
smtpd_recipient_restrictions = permit_sasl_authenticated,  permit_mynetworks, check_relay_domains
smtpd_sasl_auth_enable = yes
smtpd_sasl_local_domain =
smtpd_sasl_security_options = noanonymous
unknown_local_recipient_reject_code = 450