ORA-01031: insufficient privileges error

DB Version : 10.2.0.4.0
OS version : Sun SPARC 5.10
When i try logging in as SYS through local authentication, i get
$ sqlplus / as sysdba
SQL*Plus: Release 10.2.0.4.0 - Production on Wed Aug 18 15:56:16 2010
Copyright (c) 1982, 2007, Oracle.  All Rights Reserved.
ERROR:
ORA-01031: insufficient privileges
Enter user-name:So, i recreated the password file in
$ORACLE_HOME/dbsBut i still am getting this error.
I can login to SYS locally and remotely through tns entry though
sqlplus sys/secret@tnsentry as sysdbaFollowing is the result of id command
$ id oracle
uid=1001(oracle) gid=1000(oinstall)Result of ls command in ORACLE_HOME/dbs directory
$ ls -alrt *pw*
-rw-r-----   1 oracle   oinstall    1536 Aug 18 12:01 orapwmhprod -- instance name is mhprod

Your OS user which currently logged on actually is not member of dba OS group,provide this and try again.
oinstall is the owner of the oracle inventory.
[oracle@rac1 bin]$ id oracle
uid=500(oracle) gid=500(oinstall) groups=500(oinstall),501(dba)

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    SQL> ERROR:
    ORA-01031: insufficient privileges
    SQL> ORA-01031: insufficient privileges
    SQL>
    ./dbstart: Database instance "orcl" warm started.
    Please help me to ressolve this issue.
    Thanks
    Krishna

    yes, password file is there in /etc/passwd
    here are the contents:
    root:x:0:0:Super-User:/:/sbin/sh
    lroot:x:0:0:Super-User:/:/sbin/sh
    daemon:x:1:1::/:
    bin:x:2:2::/usr/bin:/bin/false
    sys:x:3:3::/:
    adm:x:4:4:Admin:/var/adm:/bin/false
    lp:x:71:8:Line Printer Admin:/usr/spool/lp:/bin/false
    uucp:x:5:5:uucp Admin:/usr/lib/uucp:/bin/false
    nuucp:x:9:9:uucp Admin:/var/spool/uucppublic:/usr/lib/uucp/uucico
    listen:x:37:4:Network Admin:/usr/net/nls:/bin/false
    nobody:x:60001:60001:Nobody:/:/bin/false
    noaccess:x:60002:60002:No Access User:/:/bin/false
    nobody4:x:65534:65534:SunOS 4.x Nobody:/:/bin/false
    itunix:x:50000:14:IT Unix Account:/export/home/itunix:/bin/csh
    hharika:x:765:38:Harpal Harika:/export/home/hharika:/bin/csh
    prsingh:x:795:38:Pradeep Singh:/export/home/prsingh:/bin/csh
    mmir:x:1229:21:Mir Monis Ali:/export/home/mmir:/bin/csh
    bogunnai:x:1207:21:Bose Ogunnaike:/export/home/bogunnai:/bin/ksh
    mpokala:x:2117:21:Mahesh Pokala:/export/home/mpokala:/bin/ksh
    apopov:x:2385:38:Anton Popov:/export/home/apopov:/bin/csh
    kkeith:x:2629:227:Kevin Keith:/home/kkeith:/usr/bin/ksh
    sshd:x:22:22:SSH Privsep:/var/empty:/bin/false
    patrol:x:2784:10:Patrol User:/opt/bmc:/usr/bin/ksh
    smmsp:x:25:25:Sendmail Submission user:/none:/bin/false
    ldap:x:50001:1002::/export/home/ldap:/bin/sh
    perfuser:x:884:268::/export/home/perfuser:/bin/csh
    webservd:x:80:80::/home/webservd:/bin/pfsh
    oracle:x:156:40:Oracle Software Owner:/export/home/oracle:/bin/bash
    perfuser_idc:x:64383:1::/home/perfuser_idc:/bin/sh
    idc_perf:x:64384:292::/home/idc_perf:/bin/sh

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