--- Comment #20 from andrew cooke <andrew(a)acooke.org> 2012-01-31 18:17:01 UTC ---
OK, so just in case anyone else reading this doesn't understand what is
happening - it's clearer when you read all the comments in /etc/default/passwd.
There the CRYPT variable is the default, but different services can be
over-ridden. In this case, CRYPT_FILES, which is for "files" service (ie,
shadow file) was being set to "md5" during install, which is the root cause of
the bug. You can edit this by hand or via Yast's "security centre" -
the default there changes the CRYPT_FILES value in default/passwd to "sha512".
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