[Samba] Error 1326 Connecting from Windows XP

[Cynthia Jeness]

I am using Samba 3.0.13-1.1 which I installed as part of installing Suse 
9.3.  I started working my way through the Samba manual and set up the 
following simple configuration file:

[general]
    workgroup = TUX-NET

[homes]
   guest ok  = no
   read only = no

I was then able to successfully connect from another Linux client also 
running Suse 9.3.   However, when I moved to my Windows client, I 
received the following error when I used net use z: \\fragbox\cj 
user:cj  pippin

System error 1240 - The account is not authorized to log in from this 
station.

I did some googling and some Microsoft postings which indicated that 
this was related to encryption or not having guest enabled.   So I 
changed my configuration to the following

[general]
   workgroup = TUX-NET
    encrypt passwords = yes

[homes]
   guest ok = yes
   read only = no

Now I get the following error:

   System error 1326 has occurred.   Logon failure:  unknown user name 
or bad password.

Also, with encryption on, my test from the Linux client also fails.

Several other points.   I do have a user account on the my Samba server 
(fragbox) with the user name cj and the password pippin.   Also, I did 
change my work group name on Microsoft to "TUX-NET" and I see TUX-NET 
when I use the Microsoft browse facility.   I have looked at the two 
logs under /var/log/samba and there is no message in the logs when I 
initiate anything from the Windows side.

I have used Samba successfully a couple of years ago but only with 
unencrypted passwords.   Given the concerns about security, I do not 
want to resort to that again.   We are proposing to replace an old 
Novell server with a new Linux server at a non-profit agency.   So I 
need to verify that this will really work before I recommend that they 
make such a move.   Please note that this is all volunteer and not for 
profit on my part.

Thanks,
Cindy Jeness