This problem is probably due to pam_ldap using crypt hashes. Due to a bug in pam_ldap (see http://bugzilla.padl.com/show_bug.cgi?id=306), pam_ldap does not create md5 hashes, even if configured to do so.
IMHO this is a serious upstream bug. -- can't create passwords greater then 8 characters https://launchpad.net/bugs/75536 -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
