I still see this on my updated Intrepid system (dist-upgraded from edgy to 
hardy to intrepid), i.e.: 
"Sorry, passwords do not match
passwd: password updated successfully"

Longer session with initial warning for password 'too simple': 
ubuntu:~$ passwd
Changing password for sysuser.
(current) UNIX password: 
Enter new UNIX password: 
Retype new UNIX password: 
Bad: new password is too simple
Enter new UNIX password: 
Retype new UNIX password: 
Sorry, passwords do not match
passwd: password updated successfully

 /etc/pam.d/common-password  :
$ egrep -v '#|^$' /etc/pam.d/common-password       # removing '#' and empty 
lines
password        [success=1 default=ignore]      pam_unix.so obscure sha512
password        requisite                       pam_deny.so
password        required                        pam_permit.so

No ecryptfs-utils installed:
~$ apt-cache policy ecryptfs-utils
ecryptfs-utils:
  Installed: (none)
  Candidate: 53-1ubuntu11
  Version table:
     53-1ubuntu11 0
        500 http://us.archive.ubuntu.com intrepid/main Packages

-- 
passwd - passwords do not match but updated successfully
https://bugs.launchpad.net/bugs/272232
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