To enable CRAM-MD5, DIGEST-MD5, or APOP mechanisms, you must configure the Directory Server to store passwords in cleartext. If you are using a Directory Server prior to version 6 the following instructions should apply. For version 6 or later, refer to the latest Directory Server documentation (Sun Java System Directory Server Enterprise Edition 6.0 Administration Guide): :
In the Directory Server Console, open the Directory Server you want to configure.
Click the Configuration tab.
Open Data in the left pane.
Click Passwords in the right pane.
From the Password encryption drop-down list, choose “cleartext”.
This change only impacts users created in the future. Existing users will have to transition or have their password reset after this change.