VSFTPD is not accepting User ID and Password

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Issue

When a user tries to log onto VSFTPD server and they are prompted for a password, the session stalls for a bit and the fails with incorrect login error.
However the users are able to ssh in to the VSFTPD server directly.

Environment

Red Hat Enterprise Linux 5 version 6
vsftpd-2.0.5-16.el5_5.1

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