I can confirm this bug - it happened to me after an upgrade a few days ago too. I got "Module is unknown" messages when typing a username into the login prompt (it didn't even prompt me for a password). Had to boot into single mode, change every occurence of "pam_unix2.so" and "blowfish" into "pam_unix.so" and "md5", respectively, in /etc/pam.d/*, then set new passwords for the users in order to replace the blowfish hashes by md5 hashes in /etc/shadow.
ii libpam-runtime 0.79-4 Runtime support for the PAM library ii libpam-unix2 2.1-2 Blowfish-capable PAM module ii libpam0g 0.79-4 Pluggable Authentication Modules library ii libxcrypt1 2.4-1 Crypt library for DES, MD5, and blowfish ii libc6 2.5-11 GNU C Library: Shared libraries -- To UNSUBSCRIBE, email to [EMAIL PROTECTED] with a subject of "unsubscribe". Trouble? Contact [EMAIL PROTECTED]