Stuck on very basic freeradius setup

[Tiago]

Hello,
I've just installed freeradius 2.x on an ubuntu server 12.04 with apt-get.

I've follow documentation and I'm stuck on a very basic setup (pap auth).
Basically I'm testing the default config using the users file to test auth
with radtest.

So, here is the thing:

*users file - first line:
teste Cleartext-Password:="teste"*

I'm running freeradius on debug mode, here is the error log:
rad_recv: Access-Request packet from host 127.0.0.1 port 38134, id=101,
length=57
        User-Name = "teste"
        User-Password = "teste"
        NAS-IP-Address = 201.x.x.x
        NAS-Port = 0
# Executing section authorize from file
/etc/freeradius/sites-enabled/default
+- entering group authorize {...}
++[preprocess] returns ok
++[chap] returns noop
++[mschap] returns noop
++[digest] returns noop
[suffix] No '@' in User-Name = "teste", looking up realm NULL
[suffix] No such realm "NULL"
++[suffix] returns noop
[eap] No EAP-Message, not doing EAP
++[eap] returns noop
[files] users: Matched entry teste at line 1
++[files] returns ok
++[expiration] returns noop
++[logintime] returns noop
++[pap] returns updated
Found Auth-Type = PAP
# Executing group from file /etc/freeradius/sites-enabled/default
+- entering group PAP {...}
*[pap] login attempt with password "teste"
[pap] No password configured for the user.  Cannot do authentication*
*++[pap] returns fail
Failed to authenticate the user.*
Login incorrect: [teste/teste] (from client localhost port 0)
Using Post-Auth-Type Reject
# Executing group from file /etc/freeradius/sites-enabled/default
+- entering group REJECT {...}
[attr_filter.access_reject]     expand: %{User-Name} -> teste
 attr_filter: Matched entry DEFAULT at line 11
++[attr_filter.access_reject] returns updated....

My radtest command:
radtest teste teste 127.0.0.1 0 testing123

Ok, is that so obvious that I'm blind? Is there pap auth looking for
another file instead users file?

What am I missing?

Thanks people.
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