I think you were closing this bug a bit too fast.
This works for me on both etch and sid (which are you using?).
Etch.
> Maybe there's some extra whitespace like in #419857?
No.
What I have found: when I login with a correct password, I see:
==> messages <==
May 2 14:33:00 ridcully vsftpd: Wed May 2 14:33:00 2007 [pid 32602]
CONNECT: Client "127.0.0.1"
May 2 14:33:05 ridcully vsftpd: Wed May 2 14:33:05 2007 [pid 32601] [olaf]
FAIL LOGIN: Client "127.0.0.1"
When I login with a wrong password, I get this additional log entry:
==> auth.log <==
May 2 14:33:11 ridcully vsftpd: (pam_unix) authentication failure; logname=
uid=0 euid=0 tty=ftp ruser=olaf rhost=127.0.0.1 user=olaf
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