I just had a little disaster with my SME 7.5.1 system where (to make a long story short) in the end I had to restore my system by hand from bits and pieces from the backup (the affa --fullrestore actually corrupted the freshly installed system to an extend it did not reboot properly

) and manually put things in place.
After much hair tearing, it is finally up again and I followed instructions in:
http://wiki.contribs.org/Backup_server_config#Manually_transferring_configuration_informationto help with restoring the configuration data and user accounts data.
Now everything seems to be Ok with workstations connecting and logging in and with Putty I can login as root, admin and users (that have shell access).
But what has me stumped is that I can't get the IMAP access to authenticate (Thunderbird keeps prompting for a password while none of its setting have changed from before the crash).
When I look into /var/log/imaps/current I can see the connection being made like below:
@400000004d51494a3288d614 tcpsvd: info: status 1/400
@400000004d51494a3288e1cc tcpsvd: info: pid 14035 from 10.1.0.220
@400000004d51494a3288e99c tcpsvd: info: concurrency 14035 10.1.0.220 1/20
@400000004d51494a3288ed84 tcpsvd: info: start 14035 0:10.1.0.20 ::10.1.0.220:56735 ./peers/10.1.0
@400000004d51494a329d060c imapfront-auth[14035]: * OK imapfront ready .
@400000004d51494b0371b4cc imapfront-auth[14035]: * CAPABILITY IMAP4rev1 AUTH=LOGIN DEFAULT
@400000004d51494b03721a5c imapfront-auth[14035]: 1 OK CAPABILITY completed
@400000004d51494b0f90fa4c imapfront-auth[14035]: SASL AUTH login username=marco
But when I press enter or retry (on Thunderbird password prompt), there is nothing showing up in this log until I cancel:
@400000004d5149af06d9325c sslio[14035]: info: bytes in: 547
@400000004d5149af06d93e14 sslio[14035]: info: bytes ou: 1807
@400000004d5149af06d941fc imap(marco): Info: Connection closed bytes=31/352
@400000004d5149af1710b76c tcpsvd: info: end 14035 exit 0
@400000004d5149af1710bf3c tcpsvd: info: status 0/400
Why does other access methods authenticate correctly but not IMAP?
Also I can't login on webmail either. Very similar entries in the log (with a couple of retries before it gives an error after a few minutes.
Could I have missed some specific authentication key or password file that IMAP uses? Or there a configuration setting that I missed and SME is now confused about?
Marco