After an upgrade to oneiric it works again. Oneiric has the following login version:
ii login 1:4.1.4.2+svn3283-3ubuntu2 -- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/600377 Title: newgrp password enabled group doesn't work To manage notifications about this bug go to: https://bugs.launchpad.net/ubuntu/+source/shadow/+bug/600377/+subscriptions -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs
