xscreensaver problems with new system-auth

[Bill Tangren]

I have noticed that xscreensaver no longer accepts my password when I try to log 
in (to GNOME). The log error message I get is:

Aug  3 16:06:17 mach2 xscreensaver[3731]: FAILED LOGIN 1 ON DISPLAY ":0.0", FOR 
"bjt"

# This is what I have in system-auth:
auth        required      /lib/security/$ISA/pam_env.so
auth        required      /lib/security/$ISA/pam_tally.so onerr=fail no_magic_root
auth        sufficient    /lib/security/$ISA/pam_unix.so likeauth nullok
auth        required      /lib/security/$ISA/pam_deny.so
account     required      /lib/security/$ISA/pam_unix.so
account     required      /lib/security/$ISA/pam_tally.so deny=3 no_magic_root reset
password    required      /lib/security/$ISA/pam_cracklib.so retry=3 type=mach2 
minlen=8 dcredit=-1 ucredit=-1 ocredit=-1 lcredit=0
password    sufficient    /lib/security/$ISA/pam_unix.so nullok use_authok md5 
shadow remember=15
password    required      /lib/security/$ISA/pam_deny.so
session     required      /lib/security/$ISA/pam_limits.so
session     required      /lib/security/$ISA/pam_unix.so

# This is the default
auth        required      /lib/security/$ISA/pam_env.so
auth        sufficient    /lib/security/$ISA/pam_unix.so likeauth nullok
auth        required      /lib/security/$ISA/pam_deny.so
account     required      /lib/security/$ISA/pam_unix.so
account     sufficient    /lib/security/$ISA/pam_succeed_if.so uid < 100 quiet
account     required      /lib/security/$ISA/pam_permit.so
password    requisite     /lib/security/$ISA/pam_cracklib.so retry=3
password    sufficient    /lib/security/$ISA/pam_unix.so nullok use_authtok md5 
shadow remember=10
password    required      /lib/security/$ISA/pam_deny.so
session     required      /lib/security/$ISA/pam_limits.so
session     required      /lib/security/$ISA/pam_unix.so

Can anyone tell me what here is stopping xscreensaver from accepting my password 
(when the login and command line does)?

Thanks!

Bill Tangren