I just ran across something in the new beta that I hadn't noticed before. I have the plugin configured in the network and network activated.
However 1.7 is still exhibiting the same behavior as 1.6 where the Directory Auth menu is listed under settings and you have to re-enter all the info. This is the first time I've tested on a completely new multi-user install.
My previous testing was as an upgrade to an existing network so I didn't notice the settings I put in the network area weren't really being passed on to the sites.
On a related note how do I completely remove any traces of wpdirauth from the database? I'd like to start over clean plugin data wise and start testing again.