Thanks for the reply.
$ISA is set by *authconfig* as far as I can tell - I just mirrored the syntax after trying it without (no difference).
[BTW I am trying to ssh in as testuser not root - ssh to root is not permitted on *any* systems I use

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The reason I chose the system-auth is because I read (somewhere over the last 24 hours) that login calls system-auth, as do many of the other PAM modules - and if this works, it takes care of them as well!?!?!
My login module (see below) does call system-auth, but perhaps you are right and it is somehow in the wrong order (or some such). I will give login a try.
#%PAM-1.0
auth required pam_securetty.so
auth required pam_stack.so service=system-auth
auth required pam_nologin.so
account required pam_stack.so service=system-auth
password required pam_stack.so service=system-auth
session required pam_stack.so service=system-auth
session optional pam_console.so