Upgrade v1 to 1.1.1: jabber can`t autorise users {badarg, [{erlang, binary_to_term, [<<0,0>>]}

I have a problem.
I upgraded Erlang and EJabberd from 1 to 1.1.1 (just installed over). Now users can`t login:

=INFO REPORT==== 15-Jun-2006::09:04:10 ===
I(<0.236.0>:ejabberd_listener:90): (#Port<0.348>) Accepted connection {{10,1,2,
29},1427} -> {{10,1,2,129},5223}

=ERROR REPORT==== 15-Jun-2006::09:04:10 ===
** Generic server <0.315.0> terminating
** Last message in was {tcp,#Port<0.340>,
<<128,202,1,3,1,0,177,0,0,0,16,1,0,128,2,0,128,3,0,
28,4,0,128,5,0,128,6,0,64,7,0,192,0,0,4,0,0,3,0,0,5,0,0,6,0,0,7,0,0,8,0,0,9,0,0
10,0,0,21,0,0,22,0,0,20,0,0,18,0,0,19,0,0,47,0,0,53,0,0,51,0,0,50,0,0,48,0,0,49
0,0,54,0,0,55,0,0,56,0,0,57,0,0,11,0,0,12,0,0,13,0,0,14,0,0,15,0,0,16,0,0,17,0,
,23,0,0,24,0,0,25,0,0,26,0,0,27,0,0,52,0,0,58,0,0,1,0,0,2,0,0,65,0,0,66,0,0,67,
,0,68,0,0,69,0,0,70,0,0,132,0,0,133,0,0,134,0,0,135,0,0,136,0,0,137,0,0,0,235,7
,94,86,164,115,100,248,9,241,253,112,42,161,104,205>>}
** When Server state == {state,{tlssock,#Port<0.340>,#Port<0.343>},
tls,
none,
<0.314.0>,
infinity,
{xml_stream_state,
<0.314.0>,
#Port<0.346>,
[],
0,
infinity},
infinity}
** Reason for termination ==
** {badarg,[{erlang,binary_to_term,[<<0,0>>]},
{xml_stream,parse,2},
{ejabberd_receiver,process_data,2},
{ejabberd_receiver,handle_info,2},
{gen_server,handle_msg,6},
{proc_lib,init_p,5}]}

Why can it happen? What to do now?
Thanks.