Here's the Eudora log when using CRAM-MD5; Note that it fails this way too.
155 64:0.14 Rcvd: "220 X1 NT-ESMTP Server mail.locustcreek.com (IMail 6.05
1842-1)\r\n"
155 32:0.14 Sent: "EHLO deep-thought.hexits.com\r\n"
155 64:0.14 Rcvd: "250-mail.locustcreek.com says hello\r\n"
155 64:0.14 Rcvd: "250-SIZE 0\r\n"
155 64:0.14 Rcvd: "250-8BITMIME\r\n"
155 64:0.14 Rcvd: "250-DSN\r\n"
155 64:0.14 Rcvd: "250-ETRN\r\n"
155 64:0.14 Rcvd: "250-AUTH LOGIN CRAM-MD5\r\n"
155 64:0.14 Rcvd: "250-AUTH=LOGIN\r\n"
155 64:0.14 Rcvd: "250 EXPN\r\n"
155 32:0.14 Sent: "AUTH CRAM-MD5\r\n"
155 64:0.14 Rcvd: "334 PDY0ODguNjUzNjU4MDFAb3Jpb24+\r\n"
155 32:0.14 Sent:
"aGV4aXRzYWxlcyBiZjk4ODg4ZjIyYmI3M2Y4NGZmNWQxMzc5ZGMxNzA5ZA==\r\n"
155 64:0.14 Rcvd: "500 failed authentication\r\n"
155 32:0.14 Sent: "RSET\r\n"
155 64:0.14 Rcvd: "250 ok its reset\r\n"
155 32:0.14 Sent: "MAIL FROM:<[EMAIL PROTECTED]>\r\n"
155 64:0.14 Rcvd: "250 ok\r\n"
155 32:0.14 Sent: "RCPT TO:<[EMAIL PROTECTED]>\r\n"
155 64:0.14 Rcvd: "550 not local host aol.com, not a gateway\r\n"
155 32:0.14 Sent: "QUIT\r\n"
155 64:0.14 Rcvd: "221 Goodbye\r\n"
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