[Samba] Stuck on Problem with Joining Domains...please help!

[siavush at spin.it]

after many hours of tries,  I am still stuck with a simple: I have Samba 3.0.1 ore running fine on a red hat 9.0 box (installed from RPM) when I try to  join a domain I get the infamous invalid user name or bad password error from the Win2K SP2 machines. I am really getting lost here, I have checked the root password in smbpasswd database and have used the smbpasswd command, I still get that error.
Any help would be greatly appreciated....
this is my smb.conf as given by testparm
# Global parameters
[global]
        workgroup = LPHGROUP
        server string = Samba Server
        passwd program = /usr/bin/passwd %u
        passwd chat = *New*UNIX*password* %n\\n *ReType*new*UNIX*password* %n\\n*passwd:*all*authentication*tokens*updated*successfully*
        username map = /etc/samba/smbusers
        password level = 8
        username level = 8
        unix password sync = Yes
        log file = /var/log/samba/log.%m
        max log size = 50
        name resolve order = wins lmhosts bcast
        socket options = TCP_NODELAY SO_RCVBUF=8192 SO_SNDBUF=8192
        add machine script = /usr/sbin/useradd -d /dev/null -g 100 -s /bin/false -M %u
        logon path = \\\\%L\\Profiles\\%U
        domain logons = Yes
        os level = 33
        preferred master = Yes
        domain master = Yes
        dns proxy = No
        wins support = Yes
        remote announce = 172.16.2.255
        hosts allow = 172.16.
        printing = lprng
        preserve case = No
        short preserve case = No
 
[homes]
        comment = Home Directories
        read only = No
        browseable = No
 
[netlogon]
        comment = Network Logon Service
        path = /home/profiles
        guest ok = Yes
        browseable = No
        share modes = No
 
[printers]
        comment = Temporary file space
        path = /tmp
        read only = No
        guest ok = Yes
        printable = Yes
        browseable = No
 
[public]
        comment = Public Stuff
        path = /home/samba
        write list = @staff
        guest ok = Yes