When attempting to run kinit to log into a Kerberos V5 realm I get the following error on a default install FreeBSD 9.1-RELEASE
kinit: krb5_get_init_creds: salt type 3 not supported
(Not a complete solution, as I don't know how to fix the problem, but this should at least give you an idea where to look.)
“Salt type” refers to the algorithm used to hash the password by the
crypt function. The salt type is visible in the password hash (the second field of
master.passwd) which starts with the salt type between dollars (so
$3$… in your case).
Salt type 3 under FreeBSD is an obsolete Windows hashing method, so it's surprising to see it here. I don't understand Kerberos well enough to know whether that value is coming from the client or the server.