I am using poky-denzil-7.0.1 with crownbay BSP. I am able to build images using hob, if I do not customize an image and select from ones in the dropdown menu the images work fine. But when I wan to customize the image, add packages I am unable to login. It says Login incorrect when I give the username as root.

My /etc/passwd file on the usb is :

root:x:0:0:root:/home/root:/bin/sh
daemon:x:1:1:daemon:/usr/sbin:/bin/sh
bin:x:2:2:bin:/bin:/bin/sh
sys:x:3:3:sys:/dev:/bin/sh
sync:x:4:65534:sync:/bin:/bin/sync
games:x:5:60:games:/usr/games:/bin/sh
man:x:6:12:man:/var/cache/man:/bin/sh
lp:x:7:7:lp:/var/spool/lpd:/bin/sh
mail:x:8:8:mail:/var/mail:/bin/sh
news:x:9:9:news:/var/spool/news:/bin/sh
uucp:x:10:10:uucp:/var/spool/uucp:/bin/sh
proxy:x:13:13:proxy:/bin:/bin/sh
www-data:x:33:33:www-data:/var/www:/bin/sh
backup:x:34:34:backup:/var/backups:/bin/sh
list:x:38:38:Mailing List Manager:/var/list:/bin/sh
irc:x:39:39:ircd:/var/run/ircd:/bin/sh
gnats:x:41:41:Gnats Bug-Reporting System (admin):/var/lib/gnats:/bin/sh
nobody:x:65534:65534:nobody:/nonexistent:/bin/sh
messagebus:x:999:998::/var/lib/dbus:/bin/false
avahi:x:998:997::/var/run/avahi-daemon:/bin/false

& my file permissions if relevant
-rw-r--r-- 1 root root 817 2012-08-06 10:59 passwd