Users cannot log in via SSH

Hi!
I've just finished setting up my third omv box (WDMC) and I've run into some new problems. I have activated SSH login for some of my users, I've set /bin/bash as their shell (which is available and working) - but they are not able to log in. I can log in using the root account, but the other accounts fail. The strange thing is that the users are being added to the /etc/passwd (/etc/shadow files):

plexmedia:x:1001:100:::/bin/bash

PassswordAuthentication is turned on in sshd_config. And yes, the password is correct. I've changed it a couple of times without luck. I've tried with and without user home directories, neither works.

Here is my config.xml file (ssh config part, forum software claimed my config.xml was too long):

<!-- Plugin configuration area -->
  <services>
    <ssh>
      <enable>1</enable>
      <port>22</port>
      <extraoptions></extraoptions>
      <passwordauthentication>1</passwordauthentication>
      <pubkeyauthentication>1</pubkeyauthentication>
      <permitrootlogin>1</permitrootlogin>
      <tcpforwarding>0</tcpforwarding>
      <compression>0</compression>
    </ssh>

Thanks for your fast support, it works!