I have just started looking at LDAP authentication to plug into our Windows Active Directory.
I seem to have setup LDAP correctly via Moodle and can login to Moodle with accounts located in Active Directory.
However, If I change a users password in Active Directory, Moodle recognises the "new" password but also remembers the old password to.
I did set the option in LDAP settings; Hide Passwords = Yes.
I am running Moodle 1.9.1 on Red Hat Enterprise Linux with my LDAP running on Windows 2003.