Problem in adding external user with FBA

The forms-based authentication (FBA) provider supports authentication against credentials stored in Active Directory, in a database such as a SQL Server database, or in a Lightweight Directory Access Protocol (LDAP) data store such as Novell eDirectory, Novell Directory Services (NDS), or Sun ONE.

I had issue with form based authentication i get the below error when try to add new external user to SharePoint group.

The user or group '' is unknown.   at Microsoft.SharePoint.Utilities.SPUtility.FilterValidLoginName(String loginName, SPSite site) 
   at Microsoft.SharePoint.SPUserCollection.FilterConvertSPUserInfoArray(SPUserInfo[] userInfoArray) 
   at Microsoft.SharePoint.SPUserCollection.AddCollection(SPUserInfo[] addUsersInfo) 
   at Microsoft.SharePoint.ApplicationPages.AclInv.BtnOK_Click(Object sender, EventArgs e) 
   at System.Web.UI.WebControls.Button.OnClick(EventArgs e) 
   at System.Web.UI.WebControls.Button.RaisePostBackEvent(String eventArgument) 
   at System.Web.UI.WebControls.Button.System.Web.UI.IPostBackEventHandler.RaisePostBackEvent(String eventArgument) 
   at System.Web.UI.Page.RaisePostBackEvent(IPostBackEventHandler sourceControl, String eventArgument) 
   at System.Web.UI.Page.RaisePostBackEvent(NameValueCollection postData) 
   at System.Web.UI.Page.ProcessRequestMain(Boolean includeStagesBeforeAsyncPoint, Boolean includeStagesAfterAsyncPoint)

Most of time fix to this kind of issues is correct configuration of Authentication Providers in Central administration. Same worked for me too. I followed the below two links to resolve my problem:
http://msdn.microsoft.com/en-us/library/bb975136%28v=office.12%29.aspx#MOSS2007FBAPart1_Intro

http://technet.microsoft.com/en-us/library/cc262201%28office.12%29.aspx#section1

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About Rajan
I am Rajan Garg working as a Senior Software Engineer in a company. I am working on the Microsoft technologies.

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