-ERR Authentication Failed..

I have Roundcude installed at Virtual Host, Mydomain.com and I can login without any problems. When I try to telent in, I get this:

telnet mydomain 110
+OK Dovecot ready.
user beverly.mydomain.com
pass mypass
-ERR Authentication failed.

mypass is the same password I use to login to roundcube
So this tells me that there is an issue with the authentication in Dovecot or IMAP or both from the outside.
I am able to send mail but, I am unable to receive mail. Where do I look for the config option to correct this?