I tried it out and it worked for me

Version 12.4(25b)

Here is the configuration - 

R15
__

username IPX access-class 2 secret 5 $1$j4No$dbNkw8uwtWk1pZY6InXWl/
username CISCO access-class 2 secret 5 $1$2Ius$s.mtt6bsrt0zPG9j5jFlu1
username local access-class 2 secret 5 $1$DJxW$dV4PDbUnhezdBRfD/oRQZ.

I also tried with this account just to be sure "username local access-class
2 password 0 ipexpert"

access-list 2 deny   any

line vty 0 4
 login local

>From R16
_________

[Connection to 200.0.0.15 closed by foreign host]
R16#telnet 200.0.0.15
Trying 200.0.0.15 ... Open
User Access Verification

Username: IPX
Password:
R15>exit

[Connection to 200.0.0.15 closed by foreign host]
R16#telnet 200.0.0.15
Trying 200.0.0.15 ... Open


User Access Verification

Username: CISCO
Password:
R15>exit

[Connection to 200.0.0.15 closed by foreign host]
R16#telnet 200.0.0.15
Trying 200.0.0.15 ... Open


User Access Verification

Username: local
Password:
R15>exit

[Connection to 200.0.0.15 closed by foreign host]


Not sure if this helps



-----Original Message-----
From: [email protected]
[mailto:[email protected]] On Behalf Of Jay McMickle
Sent: December-29-10 4:32 PM
To: [email protected]
Subject: [OSL | CCIE_RS] Lab 17.4

I'm working on Lab 17.4, where we restrict telnet access.
    I have added this:
    access-list 2 deny any
    username local access-class 2 pass ipexpert
    username jay access-class 2 pass jay
    line vty 0 4
    login local
   
 When telnetting from R9, I get prompted, but I get a "login invaid".  If I 
    create another user using the same access-class, I can authenticate
fine. 

 Is this issue due to the username being local?  I'm wondering if this is a
new 
code 

    issue as I'm running the latest T train for 12.4.
    Username: local
    Password: 
    % Login invalid 
  
  I'm running-
    c2800nm-adventerprisek9-mz.124-24.T4.bin on my 2811
    R9#telnet 200.0.0.8
    Trying 200.0.0.8 ... Open

    User Access Verification
    Username: jay
    Password: 
    R8>



      
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