I'm getting the same thing. I can FTP, but can't login. It is like it still has a password set, even though I removed the entry. However, trying the password I had set doesn't work.

Now, if I go in and set a password, then I can get in just fine. As soon as I try and remove it, I run into the same problem...

b13, v293


EDIT: Wait, I got it. I set:

kftpd_password=

Unplugged the empeg. That didn't work. So, then I completely removed the line (again, it was gone before the previous step), and unplugged it. Plugged it back in and now I'm up to v298.