FirstClass authentication module does not hold onto settings and has cosmetic issues solved below. This issue plagued us in 1.8 and is still here.
Our issues with FirstClass authentication were resolved with fix from Jonathon Dickmann's post on this issues. See http://moodle.org/mod/forum/discuss.php?d=68767&parent=345561
Issue not as emergent as originally proposed. Make sure admin has instructions to turn command line access on for ALL users in Firstclass for this to work. See post above for critical additions in order for authentication to work moodle must hold onto the config setting which it doen not for this version and now with 1.9 too.