diff --git a/packages/user-setup/user-setup-apply b/packages/user-setup/user-setup-apply
index 56b2357..173815b 100755
--- a/packages/user-setup/user-setup-apply
+++ b/packages/user-setup/user-setup-apply
@@ -25,10 +25,23 @@ fi
 # Pass in three arguments: the user, the password, and 'true' if the
 # password has been pre-crypted (by preseeding).
 setpassword () {
-	local USER PASSWD OPTS
+	local USER PASSWD OPTS VERSION LEGACY
 	USER="$1"
 	PASSWD="$2"
-	if [ "$3" = true ]; then
+
+	# legacy support for versions that aren't using the PAM support
+	VERSION=`$chroot dpkg -s passwd | sed -n '/^Version:/s,^Version: ,,p'`
+	LEGACY=
+	if $chroot dpkg --compare-versions $VERSION lt 1:4.1.4-1; then
+		LEGACY=true
+		if [ "$3" = true ]; then
+			OPTS=-e
+		else
+			OPTS=-m
+		fi
+	fi
+
+	if [ "$3" = true ] && [ -z "$LEGACY" ]; then
 		$chroot $ROOT usermod --password=$PASSWD $USER
 	else
 		$chroot $ROOT chpasswd $OPTS <<EOF