This one blows my mind and I'm stumped. Logged in as root, I create a new user bash script as follows:

useradd mynewuser -d /home/red -m -p GoBashMe123!

I can su to mynewuser via
su mynewuser

and I see:
mynewuser@my_suse:/root

However, if I logout of SUSE 10 sp1, and I attempt to logon to via this account, I get the message "incorrect user name or password". I am logging on via Switch User or the Initial Logon screen. I can logon via root in every way possible.

I've used this exact script on other installations of SUSE and it works perfectly.

I've also done this manually, and no joy on this instance.

I have tried all lower case, shorter passwords, etc and no joy.

I can see that the user is set up in YAST, and it appears normal in all aspects, including the "disable logon" is unchecked. If I su as the user, in a terminal window and try and delete while root, the user can't be deleted because it's logged in.