Win98 can't login Samba 2.2.0 PDC. Last hope, please help

[Gatis Gailis]

Hi, I have been trying to setup Samba 2.2.0 as PDC on RedHat 7.1 for about a
week now, day and night, and I still can't get it to work. I have read the
books Samba UNIX&NT Internetworking and RedHat Linux 6 Server and FAQ and
HOWTO about Samba 2.2.x as PDC.
So my plan is to set up a network consisting of 2 machines - Linux and
Win98. To begin with I don't understand some things about linux server:

1. Do I need to set up a DNS server on Linux (I guess not, but still..)?
2. If I make Samba provide WINS service, do I need DNS?

I use linuxconf to setup Host details and manual suggests to name the host
HOST.DOMAIN, while Samba server is named in smb.conf->workgroup = DOMAIN. So
I have one IP address, 192.168.0.1, for the HOST. I can ping this address
192.168.0.1 from my win98 machine, but I cannot ping the name HOST (in
TCP/IP properties WINS is pointed to 192.168.0.1 and NetBIOS over TCP/IP
enabled).

3. Does it mean that WINS is not working?

Ok, I make a file lmhosts with entry
192.168.0.1    HOST
and now I can ping HOST. What I don't understand is where is the domain
server (e.g. what would be the entry in lmhosts), because I cannot ping name
DOMAIN. I see a workgroup icon in Network Neiborhood named DOMAIN, but I
cannot enter it, just says "Servers in this wkgroup not available"; and if I
tell win98 to join DOMAIN, it thinks for a while and then spits "There are
no servers to verify your name/password". Ok, maybe the problem is with
Samba configuration. Here is my smb.conf:

[global]
unix password sync = yes
server string = Samba
workgroup = domain
encrypt passwords = yes
passwd program = /usr/bin/passwd
smb passwd file = /usr/local/samba/private/smbpasswd
security = user
status = yes
map to guest = never
password level = 4
null passwords = no
OS level = 65
preferred master = yes
domain master = yes
domain logons = yes
# Next is from HOWTO
add user script = /usr/sbin/adduser -n -g machines -c Win98Machine -d
/dev/null -s /bin/false %m$
logon script = scripts\%U.bat
domain admin group = @Win2Kadm
guest account = ftp
dead time = 0
load printers = yes
allow hosts = 192.168.0.
wins support = yes
netbios name = host

[printers]
available = no
printable = yes
browseable = no
public = no
path = /var/spool/samba
guest ok = no

[homes]
available = yes
guest ok = no
read only = no
create mask = 0700
directory mask = 0700
locking = no

[netlogon]
path = /usr/local/samba/netlogon
writeable = no
guest ok = no


Besides, here is my /etc/sysconfig/network:
networking=yes
hostname="host.domain"
# Do I really need gateway now? I understand that I would need it in case I
have another network connected, e.g. Internet
gateway="192.168.0.254"
gatewaydev="eth0"
forward_ipv4="no"

/etc/sysconfig/network-scripts/ifcfg-eth0:
device="eth0"
bootproto="none"
ipaddr="192.168.0.1"
netmask="255.255.255.0"
onboot="yes"

I have set up users and machines in passwd, and made a
/usr/local/samba/private/smbpasswd.
Another thing I tried to do is smbclient -L host -U root, but it always said
"BADSERV or BADPASSWD.....". I guess it was just because I entered
not-encrypted password, but SAMBA is set to use encrypted passwords.

If you have any idea what's wrong with all this, please healp me out as I am
sleeping only some 3 hours a day and won't have peace untils it gets
working.

Gatis