User verification problem using password = server [2.0.0beta1]

[David.Anthony]

Greetings

Having fun with Samba 2.0beta1 and security = server 
Is there something missing in my config?

# Global parameters
          workgroup = COMCARE
          server string = Samba %v
          interfaces = <IP_subnet_a.x>/24 <IP>/24
          security = SERVER
          encrypt passwords = Yes
          password server = pdc.comcare.gov.au
          username map = /usr/local/samba/lib/users.map
          log level = 3
          max log size = 50
          name resolve order = host wins bcast
          socket options = TCP_NODELAY
          load printers = No
          wins server = <IP_subnet_b>.x
          remote announce = <IP_subnet_b>.255\COMCARE
          guest account = guest

There is one NT DOMAIN across the organisation with various subnets

debug level 3 log.smb excerpt

....
[1998/11/18 09:52:57, 3] smbd/negprot.c:reply_negprot(332)
  Requested protocol [NT LM 0.12]
[1998/11/18 09:52:57, 3] libsmb/namequery.c:resolve_hosts(576)
  resolve_name: Attempting host lookup for name PDC.COMCARE.GOV.AU
[1998/11/18 09:52:57, 3] lib/util_sock.c:open_socket_out(707)
  Connecting to 163.233.5.76 at port 139
[1998/11/18 09:52:57, 3] smbd/password.c:server_cryptkey(990)
  connected to password server PDC.COMCARE.GOV.AU
[1998/11/18 09:52:57, 1] smbd/password.c:server_cryptkey(1007)
  PDC.COMCARE.GOV.AU rejected the session


security = server on our 1.9.18p7 servers works fine.

PS three cheers for the improved debug format.
--
Anthony David
ISG, Host Systems Adminstrator

"You can't compare Rimmer to a book. A book has a spine"  RD VII