I found out why I had this ^M at the end of the line and deleted it using emacs. Now I get the following message:
Nov 20 18:46:10 dotlrn nsd: PAM unable to resolve symbol: pam_sm_acct_mgmt
Nov 20 18:46:10 dotlrn nsd: pam_radius_auth: Got user name mazloumi
Nov 20 18:46:10 dotlrn nsd: pam_radius_auth: Could not open configuration file /etc/raddb/server: Permission denied