The dovecot config listed in the SASL_README is obsoleted for dovecot
2.0, it should probably be updated to reflect that.  I'm not sure
exactly what should go in the SASL_README file but I'll show the
relevant part of my own dovecot config (which uses an sql db for
authentication, not pam):

auth_mechanisms = plain login
passdb {
  args = /etc/dovecot/sql.conf
  driver = sql
}
service auth {
  unix_listener /var/spool/postfix/private/auth {
    group = postfix
    mode = 0660
    user = postfix
  }
  unix_listener auth-userdb {
    group = dovecot
    mode = 0660
  }
}
userdb {
  args = /etc/dovecot/sql.conf
  driver = sql
}


Note that if you put the old config in dovecot will give a warning on
startup and `doveconf -n' will show the new config that you should
replace it with.


Peter

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