After hours of searching for a bug, it works - User accounts in sandbox mode, currently they are not persistent between restarts (ie restarting opensim.exe) but should be persistent between sessions (login/ logout).

Use the -account command line arg to enable them and then create new accounts through the web interface 

1 files changed, 1 insertions, 0 deletions

diff --git a/OpenSim.RegionServer/AgentAssetUpload.cs b/OpenSim.RegionServer/AgentAssetUpload.cs
index 9f85598..d346647 100644
--- a/OpenSim.RegionServer/AgentAssetUpload.cs
+++ b/OpenSim.RegionServer/AgentAssetUpload.cs
@@ -201,6 +201,7 @@ namespace OpenSim
                 {

                     //already complete so we can add it to the inventory

                     m_assetCache.AddAsset(trans.Asset);

+                    Console.WriteLine("creating inventory item");

                    Console.WriteLine( "ITem created is " +m_inventoryCache.AddNewInventoryItem(this.ourClient, packet.InventoryBlock.FolderID, trans.Asset).ToStringHyphenated());

                 }

                 else