DialUp Admin And Crypt Passwords

Hi I got the Freeradius version 1.0.4 setup with MySql. It is all working fine. However, when creating users through the dialup admin, the password is stored in the database without the salt key for md5, and this is causing the users' access request to be rejected. If the password is created through the unix passwd utility and then updated in the sql database, that user can authenticate successfully. Has anyone came across this problem? Thanks for your help Gef