If you create a kickstart file with "auth --useshadow --enablemd5" and
then you use function "rootpw --iscrypted _password_" where _password_ is
MD5 encrypted password then the password is incorrectly inserted
into /etc/passwd instead of /etc/shadow.

Solution: Check if "auth --useshadow" is enabled in the kickstart file
(when the "rootpw --iscrypted" is used) and if so then insert the
encrypted password in /etc/shadow.