I've just set up a minimal install on my netbook (the default was too resource hungry, so I figured I'd customize the install and learn something about linux at the same time!)

No problems logging in as root, but when I create a new user and try to login as them I just get the "Login incorrect" error. I'm certain the password is correct, though the secure log displays an authentication error. Am I missing a permission somewhere?

useradd test
usermod -p [pwd] test

Shell is added automatically I think (checking password file says shell is /bin/bash) I've tried adding the user to the sudo-ers group usermod -a -G wheel which doesn't help. I've kept the password simple in order to rule out human error.