unix password sync = True?

[Ribz]

    OK here's the problem: when i use the "smbpasswd" program it doesn't
update the "passwd" file in /etc.

    What i want: The explicate conditions in which Samba to Unix
password syncing will operate correctly on a Red Hat 7.0 (Guiness)
distro with samba 2.0.7-21ssl (included in distro) IE: perrmissions on
passwd and smbpasswd files, password program = ?, password chat = ?,
etc...

    What i dont want: Anything to do to with NT to Samba connectivity,
or any other cross platform related issues... All i want is for
smbpasswd to update /etc/passwd, thats all.
    Smb.conf:
# Samba config file created using SWAT
# from localhost (127.0.0.1)
# Date: 2001/03/20 16:03:35

# Global parameters
[global]
 workgroup = MYGROUP
 netbios name = RIBLITZ
 interfaces = eth*
 encrypt passwords = Yes
 passwd program = /usr/bin/passwd %u
 passwd chat = *password* %n\n *password* %n\n *successful*
 passwd chat debug = Yes
 unix password sync = Yes
 domain logons = Yes
 wins support = Yes

[homes]
 comment = Home Directories
 writeable = Yes

[netlogon]
 path = /data/dos/netlogon
 write list = @ourgrp
 oplocks = No

[printers]
 comment = All Printers
 path = /var/spool/samba
 printable = Yes
 browseable = No

[stuff]
 comment = misc.
 path = /stuff
 writeable = Yes
 create mask = 0777
 set directory = Yes