thought I'd mention this in case anyone else experienced same issues.
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prior too "pidgin 2.6.*" sasl2 plugins were not used so google-talk(gtalk) worked without issues.
"pidgin 2.7.0" now uses as far as i could tell the sasl2 login plugin and maybe a few others.
so with that all said:
$ su -
#(root password)
$ apt-get install -y --force-yes cyrus-sasl libsasl2-plug-*
and presto pidgin 2.7.0 google-talk(gtalk) works again.
further information on setting up the account is as follows:
Accounts > add or modify > xmpp or googletalk
Username: your account name
Domain: gmail.com
Resource: Home
Password: your password
click Advanced Tab:
- Require SSL/TLS
- Force old (port 5223) SSL
[ ] Allow plaintext auth over unencrypted streams
Connect port: 443
Connect server: talk.google.com
File transfer proxies: proxy.eu.jabber.org
click save and you now have google-talk(Gtalk)