sasl server file not found

[dave]

Hi,
    Postfix 2.1
cyrus-sasl2 and cyrus-sasl2-authd
configured for authenticated smtp on a 5.2.1 box. I'm getting an error:
"Can not connect to sasl2, server not found."
In my rc.conf i have:
saslauthd_enable="YES"
saslauthd_flags="-a getpwent"
and in my /usr/local/lib/sasl2/smtpd.conf file i have:
pwcheck_method: saslauthd
during startup i do see the message "Starting saslauthd" without any errors,
any ideas?
Thanks.
Dave.