I noticed that I have this line: smtp_sasl_password_maps = mysql:$config_directory/mysql_smtpd.cfShould I also have this line for smtpd as well? smtpd_sasl_password_maps = mysql:$config_directory/mysql_smtpd.cf
Are you using dovecot or cyrus? Dovecot has it's own sasl interface which works fine with postfix.
see: http://wiki.dovecot.org/HowTo/PostfixAndDovecotSASL -- Eero