In /etc/pam.d/common-session, the line:

session sufficient      pam_lsass.so

... is broken.  "sufficient" means that no further modules will be
considered, short-circuiting any further modules in the stack.

This is absolutely incompatible with the need to stack pam_env *after*
/etc/pam.d/common-session for handling of the ecryptfs $HOME case.  The
likewise pam-auth-update profile needs to be fixed to not use
'sufficient' here.

Are you using the likewise-open package in Ubuntu, or do you get
likewise from a different source?

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https://bugs.launchpad.net/bugs/1162836

Title:
  $PATH does not contain /usr/games - /etc/environment not sourced or
  environment not preserved

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