I can't reproduce this with /etc/pam.d/vsftpd in place and with a config
updated to look like yours.
Do you see anything helpful in /var/log/vsftpd.log or /var/log/auth.log?
** Changed in: vsftpd (Ubuntu)
Importance: Undecided => Medium
** Changed in: vsftpd (Ubuntu)
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/992578
Title:
vsftpd error 530 after upgrade from oneiric to precise
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