user level authentication in samba-2.0.0beta4

[Liam Hoekenga]

I've compiled samba 2.0.0beta4 on Sun (sparc) Solaris 2.6.

I can use smbclient to list the shares, but whenever i try to connect to
the machine, i get the following error message:

session setup failed:  ERRSRV - ERRbadpw (Bad password - name/password
pair in a Tree Connect or Session Setup are invalid.)

I have SECURTY = USER in smb.conf

when I try to use smbpasswd to reset the password on an account I get this
message:

machine 127.0.0.1 rejected the session startup.  Error was : code 131.

Does anyone have any suggestions?
Liam