Just when you thought it was safe to send email!

I've been trying to setup a debian sarge postfix server with mysql
virtual hosts/accounts. I've so far gotten postfix up and happy, amavis
doing all my checking, dovecot serving out imap, and postfixadmin
running for account management. Very nice. Now if only I could get SMTP
to work. I find that there are many ways of getting smtp going with
virtual accounts.

I'm avoiding PAM and saslauthd because you have to store the passwords
in mysql as clear text. This lead me to courier authdaemon package. I've
got authdaemon configured and running. I've created the file
/etc/postfix/sasl/smptd.conf with the following:
cat /etc/postfix/sasl/smtpd.conf
pwcheck_method: authdaemond
log_level: 3
mech_list: SQL
authdaemond_path:/var/run/courier/authdaemon/socket

I have created a link to the socket in the postfix jail:
ls -l /var/spool/postfix/var/run/courier/authdaemon/socket
srwxrwxrwx  1 daemon daemon 0 Sep 28 11:09
/var/spool/postfix/var/run/courier/authdaemon/socket

And I have added the postfix user to the daemon group:
grep daemon /etc/group
daemon:x:1:postfix

Now when I try to send a message I get the following error:
fatal: no SASL authentication mechanisms

Everything I find seems to say that the reason I get this message should
be because I don't have the postfix/sasl/smtpd.conf file. BUT I DO!

Can anyone help point me in the right direction with this? I feel like
there is just one small connection missing between postfix and the
authdaemon process.

Thank you so much for any help.

Rick