[BusyBox] busybox login fails

[Phillip.Watts at nlynx.com]

On a knoppix system(Debian) which had a
pam enabled login:

I installed busybox latest and enabled the internal function which
disables security on login.
I did not enable shadow passwords in busybox.

But I can't login ( I saved one console not logged in to try it)

When I run busybox passwd it modifies shadow instead of passwd. ??

Is the problem a setting in the system I don't know about?
The format of the existing passwd/shadow files, which used pam?

confused.