I tried the method by adding a user: useradd test and then from the
switch user I went into test and was able to login without a password.
This problem doesn't exist in the later kernels. Please update your
kernel which will solve your problem and thanks for reporting this
bug...
** Changed in: pam (Ubuntu)
Status: New => Fix Released
** Changed in: pam (Ubuntu)
Assignee: (unassigned) => Vikram (dhillon-v10)
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users with no password can't log in with gdm
https://bugs.launchpad.net/bugs/104957
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