Postfix only supports SASL through Dovecot and Cyrus but it looks like you are using Cyrus. Additionally, it looks like the Cyrus sasl auth is at least partially functional, which suggests that the problem may be related to communication with postfix.
What is interesting is that it is saying things like unkown user: VXNlcm5hbWU6. Is this a base64 encoding? How does this compare in a log file to a plain login? I think the next error messages indicate that the plain and login methods failed and it is then going on to password login which may not be supported.
I must appologize for not having any better suggestions for you. In case you haven't seen it, the postfix documentation seems to be pretty comprehensive in this regard:
http://www.postfix.org/SASL_README.h...er_sasl_enable. Specifically look for the section titled: Testing SASL authentication in the Postfix SMTP Server
Also, note that this is still a plain text login, even though it is hashed. You should consider running this over TLS, in which case a plain login may be sufficient.