Active Directory mixed mode authentication

Hi,

I am only using ldap_auth as all my users need to do is authenticate. In order to get users into the database, I use hook_cron and import the users from AD and save them using this code:

		// Insert the account
		$useraccount = array(
		  'name' => $aduser['username'],
			'pass' => user_password(20),
			'mail' => $aduser['mail'],
			'status' => 1,
			'init' => $aduser['mail'],
			'authname_ldapauth' => $name,
			'ldap_authentified' => true,
			'ldap_dn' => $aduser['dn'],
			'ldap_config' => '1',
			'roles' => array(4 => 'staff member'),
		);
		
		// Save the user
		$populateduser = user_save(null, $useraccount);		

This seems to work fine on the surface, my users are appearing and their content_profile's are appearing as well. Most of the users I have tested are authenticating fine, but a few are not. I'm trying to use mixed mode authentication to help debug (so I set the users a password using the /user/[x]/edit interface), but the drupal authentication just doesn't work and it makes AD bomb out and lock out the users from their accounts.

In the mixed mode authentication label it says ' Mixed mode. The LDAP authentication is performed only if Drupal authentication fails', does this mean that I should be able to set the Drupal accounts (which log into the site via ldap usually) with a drupal password in the way i described and have them authenticate with that? Or does it mean that users who authenticate with AD through ldap cannot have a 'drupal' password, but it's possible to create ordinary non-ldap users and have them authenticate with drupal in the usual way?

Thanks for your help.