openssh unix dev - Mar 2001 - problem with openssh-2.3.0p1 and pam-0.72-20.6.x under Redhat 6.1

Hello,
I am using Redhat 6.1 on pentium. I have a problem with sshd in openssh,
when I try to connect by ssh to sshd even on the local machine, the pam
module will not authenticate my password. Here is a transcript of sshd -ddd:
debug1: sshd version OpenSSH_2.3.0p1
debug1: Seeding random number generator
debug1: read DSA private key done
debug1: Seeding random number generator
debug1: Bind to port 22 on 0.0.0.0.
Server listening on 0.0.0.0 port 22.
Generating 512 bit RSA key.
debug1: Seeding random number generator
debug1: Seeding random number generator
RSA key generation complete.
debug1: Server will not fork when running in debugging mode.
Connection from 192.168.4.1 port 802
debug1: Client protocol version 1.5; client software version
OpenSSH_2.3.0p1
debug1: no match: OpenSSH_2.3.0p1
debug1: Local version string SSH-1.99-OpenSSH_2.3.0p1
debug1: Sent 512 bit public key and 1024 bit host key.
debug1: Encryption type: blowfish
debug1: Received session key; encryption turned on.
debug1: Installing crc compensation attack detector.
debug1: Starting up PAM with username "root"
debug1: Attempting authentication for root.
debug1: PAM Password authentication for "root" failed[7]:
Authentication
failure
Failed password for ROOT from 192.168.4.1 port 802
Connection closed by 192.168.4.1
debug1: Calling cleanup 0x804fd10(0x0)
Cannot close PAM session[4]: System error
debug1: Cannot delete credentials[15]: Authentication service cannot
retrieve user credentials
debug1: Calling cleanup 0x805fe0c(0x0)

I have tried to upgrade pam to pam-0.72-20.6.x from redhat website, but it
didn't help. I have 'PermitEmptyPasswords no' option. Can you help
me to
find out what is the problem ?
Thank you Jan Samohyl