I can confirm this on Alpha 5. It also occurs on the first run of
Empathy. So when you first run Empathy, it goes through the account set-
up process:

1. Select the "Yes, I have an account I would like to connect to" (Not sure if 
that's the exact wording, but it's the only "Yes" option.
2. Under the protocol, select "Yahoo!".

What should happen is that some text boxes appear where you can enter
your username, password, and perhaps other settings. Once you finish
those, you're able to select "forward" and move on.

What actually happens is that no text boxes appear, and there's nothing
to do. The "Forward" option is greyed out, and you have to close the
account set-up. If you have other non-Yahoo accounts, these must be set-
up via Edit>Account because the initial process will not get to them.

** Changed in: empathy (Ubuntu)
       Status: New => Confirmed

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Empathy on Ubuntu 9.10 Karmic Koala cannot add a yahoo account 
https://bugs.launchpad.net/bugs/424940
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