Unable to login through telnet via 1.3.18-1

[Andrew DeFaria]

Recently updated to 1.3.18-1 and telnet/rlogin/etc have stopped working. 
inetd is running as a service just like before. The problem now is that 
I cannot authenticate! No password works:

$ telnet $(hostname)
Trying 192.168.1.121...
Connected to adefaria.SALIRA.COM.
Escape character is '^]'.

CYGWIN_NT-5.1 1.3.18(0.69/3/2) (adefaria) (tty7)

login: adefaria
Password:
Login incorrect
login: Connection closed by foreign host.

Tried several times with what I know is my correct password. When I do 
the same telnet to a machine running 1.3.17 it works fine.

Another interesting thing is:

$ passwd --status
passwd: unknown user adefaria

Clues?



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