Our user configuration for Kickstart is as follows:

# config section
auth  --useshadow  --enablemd5
rootpw --iscrypted xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
user nttuser --fullname "xxxx user" --iscrypted --password 
xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

And we don't notice any problems with the creation of the shadow file.
Perhaps this is now fixed?

-- 
shadow passwords not enabled (no rootpw)
https://launchpad.net/bugs/48918

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