cupsdAuthorize: pam_authenticate() returned 7 (Authentication failure)!

[indy500]

I cannot add or modify printers (as well as other admin operations) as
root or a user.  I did lppasswd -a root and lppasswd -a someuser and it
still won't work, the login dialog keeps asking for username and
password and both belong to the lpadmin group:

The cupsd.conf is the default one.

root at euchre:/etc/cups# uname -a
Linux euchre 2.6.32-32-generic #62-Ubuntu SMP Wed Apr 20 21:54:21 UTC
2011 i686 GNU/Linux

root at euchre:/etc/cups# cat /etc/issue.net_orig
Ubuntu 10.04.2 LTS

root at euchre:/etc/cups# id someuser
uid=1000(someuser) gid=1000(lrosen)
groups=1000(someuser),4(adm),20(dialout),24(cdrom),46(plugdev),105(lpadmin),119(admin),122(sambashare)

root at euchre:/etc/cups# id root
uid=0(root) gid=0(root) groups=0(root),105(lpadmin)

root at euchre:/etc/cups# cat cupsd.conf|grep -v ^.*#|grep -v ^$
LogLevel warn
MaxLogSize 0
SystemGroup lpadmin
Listen localhost:631
Listen /var/run/cups/cups.sock
Browsing On
BrowseOrder allow,deny
BrowseAllow all
BrowseLocalProtocols CUPS dnssd
BrowseAddress @LOCAL
DefaultAuthType Basic
<Location />
  Order allow,deny
</Location>
<Location /admin>
  Order allow,deny
</Location>
<Location /admin/conf>
  AuthType Default
  Require user @SYSTEM
  Order allow,deny
</Location>
<Policy default>
  <Limit Send-Document Send-URI Hold-Job Release-Job Restart-Job
Purge-Jobs Set-Job-Attributes Create-Job-Subscription Renew-Subscription
Cancel-Subscription Get-Notifications Reprocess-Job Cancel-Current-Job
Suspend-Current-Job Resume-Job CUPS-Move-Job CUPS-Get-Document>
    Require user @OWNER @SYSTEM
    Order deny,allow
  </Limit>
  <Limit CUPS-Add-Modify-Printer CUPS-Delete-Printer
CUPS-Add-Modify-Class CUPS-Delete-Class CUPS-Set-Default CUPS-Get-Devices>
    AuthType Default
    Require user @SYSTEM
    Order deny,allow
  </Limit>
  <Limit Pause-Printer Resume-Printer Enable-Printer Disable-Printer
Pause-Printer-After-Current-Job Hold-New-Jobs Release-Held-New-Jobs
Deactivate-Printer Activate-Printer Restart-Printer Shutdown-Printer
Startup-Printer Promote-Job Schedule-Job-After CUPS-Accept-Jobs
CUPS-Reject-Jobs>
    AuthType Default
    Require user @SYSTEM
    Order deny,allow
  </Limit>
  <Limit Cancel-Job CUPS-Authenticate-Job>
    Require user @OWNER @SYSTEM
    Order deny,allow
  </Limit>
  <Limit All>
    Order deny,allow
  </Limit>
</Policy>
<Policy authenticated>
  <Limit Create-Job Print-Job Print-URI>
    AuthType Default
    Order deny,allow
  </Limit>
  <Limit Send-Document Send-URI Hold-Job Release-Job Restart-Job
Purge-Jobs Set-Job-Attributes Create-Job-Subscription Renew-Subscription
Cancel-Subscription Get-Notifications Reprocess-Job Cancel-Current-Job
Suspend-Current-Job Resume-Job CUPS-Move-Job CUPS-Get-Document>
    AuthType Default
    Require user @OWNER @SYSTEM
    Order deny,allow
  </Limit>
  <Limit CUPS-Add-Modify-Printer CUPS-Delete-Printer
CUPS-Add-Modify-Class CUPS-Delete-Class CUPS-Set-Default>
    AuthType Default
    Require user @SYSTEM
    Order deny,allow
  </Limit>
  <Limit Pause-Printer Resume-Printer Enable-Printer Disable-Printer
Pause-Printer-After-Current-Job Hold-New-Jobs Release-Held-New-Jobs
Deactivate-Printer Activate-Printer Restart-Printer Shutdown-Printer
Startup-Printer Promote-Job Schedule-Job-After CUPS-Accept-Jobs
CUPS-Reject-Jobs>
    AuthType Default
    Require user @SYSTEM
    Order deny,allow
  </Limit>
  <Limit Cancel-Job CUPS-Authenticate-Job>
    AuthType Default
    Require user @OWNER @SYSTEM
    Order deny,allow
  </Limit>
  <Limit All>
    Order deny,allow
  </Limit>
</Policy>

tail -f  /var/log/cups/error_log
E [22/Jun/2011:13:40:26 -0400] Returning IPP client-error-not-authorized
for Create-Job
(ipp://localhost:631/printers/Hewlett-Packard-HP-LaserJet-5P) from localhost
E [22/Jun/2011:13:40:42 -0400] cupsdAuthorize: pam_authenticate()
returned 7 (Authentication failure)!
E [22/Jun/2011:13:41:43 -0400] cupsdAuthorize: pam_authenticate()
returned 7 (Authentication failure)!
E [22/Jun/2011:13:47:14 -0400] cupsdAuthorize: pam_authenticate()
returned 7 (Authentication failure)!
E [22/Jun/2011:13:55:51 -0400] cupsdAuthorize: pam_authenticate()
returned 7 (Authentication failure)!
E [22/Jun/2011:13:55:59 -0400] cupsdAuthorize: pam_authenticate()
returned 7 (Authentication failure)!