Permission denied from krb5_init_context probably means that
/etc/krb5.conf is not readable by the process. Could you check that?
Could you also check whether running kinit as the same user that gnome-
screensaver is running as works properly?
** Changed in: libpam-krb5 (Ubuntu)
Status: New => Incomplete
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https://bugs.launchpad.net/bugs/891839
Title:
xscreensaver will not unlock when using Kerberos authentication
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