Public bug reported:

steps to reproduce in hardy beta (preview):

1. setup NEWUSER by hand in /etc/passwd and if applicable add a new group in 
/etc/group
2. run passwd NEWUSER

expected behavior
============

passwd will ask you for a new password

actual result
========

it refuses to set the password. the message on the console is:

$ sudo passwd NEWUSER
passwd: Authentication service cannot retrieve authentication info
passwd: password unchanged


workaround
========

duplicate some random user in /etc/shadow and rename its userid to
NEWUSER; after that passwd will ask for a new password and set it
accordingly.

** Affects: shadow (Ubuntu)
     Importance: Medium
         Status: Confirmed

-- 
passwd refuses to set password for users without entry in /etc/shadow
https://bugs.launchpad.net/bugs/203881
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