After enabling PAm , passwd command does not work properly


error in passwd
# passwd pamuser
Changing password for "pamuser"
pamuser's New password:
Enter the new password again:
3004-709 Error changing password for "pamuser".

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entry in methods.cfg
PAM:
program = /usr/lib/security/PAM

PAMfiles:
options = auth=PAM,db=BUILTIN

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entry for pamuser in /etc/security/user
pamuser:
admin = false
SYSTEM = PAMfiles[*] AND "compat"
registry = PAMfiles


any idea what the problem could be??