smtp_auth gives error authentication failed: temporary authentication failure

[Dan Fulbright]

I'm using qmail 1.03 with qmail-ldap 20031201. I'm having trouble 
getting smtp_auth to work. EHLO returns the right thing, so I know 
smtp_auth is at least partially working. The problem is, it never 
accepts the correct password, and gives this error when LOGLEVEL is set 
to 3 or more:

authentication failed: temporary authentication failure (#4.3.0)

I have searched the archives and have tried everything that I could 
find. Here are some things that I have tried:

# cd /var/qmail/control
# ls -l ldap*
-rw-r--r--    1 root     root          17 Dec  3 23:48 ldapbasedn
-rw-r--r--    1 root     root           4 Dec  3 23:45 ldapgid
-rw-r--r--    1 root     root           2 Dec 12 23:41 ldaplocaldelivery
-rw-r--r--    1 root     root          28 Dec 12 23:53 ldaplogin
-rw-r--r--    1 root     root          20 Dec  3 23:45 ldapmessagestore
-rw-r--r--    1 root     root          10 Dec 13 13:28 ldapobjectclass
-rw-r-----    1 root     qmail          9 Dec 12 23:40 ldappassword
-rw-r--r--    1 root     root          21 Dec  3 23:48 ldapserver
-rw-r--r--    1 root     root           4 Dec  3 23:45 ldapuid
# grep qmaild /etc/group
qmail:x:504:qmaild
# grep SMTP /etc/tcp.smtp
:allow,SMTPAUTH="",AUTHPREPEND="Authenticated:",LOGLEVEL="5"
This command was run from a machine on another network, since I allow 
relaying from localhost...

$ telnet mail.XXXXXXXX.com smtp
Trying XXX.XXX.XXX.XXX...
Connected to mail.XXXXXXXX.com.
Escape character is '^]'.
220 mail.XXXXXXXX.com ESMTP
ehlo server
250-mail.XXXXXXXX.com
250-PIPELINING
250-SIZE 0
250-AUTH LOGIN PLAIN
250 8BITMIME
POP3 and IMAP work fine, as does relaying when RELAYCLIENT is set. 
auth_pop and auth_imap also work.

Any assistance would be sincerely appreciated!