Remote win98 refusing to connect to samba server

[Elias Lofgren]

The problem: attempting to connect to a samba network drive from a
Windows 98 machine gives me the error message: "Not logged on".

Background: 

We have been running samba to serve a number of w95 clients for a couple
of years.  Some of the clients are remote and we don't bother with running
nmbd(8), so all clients have LMHOSTS files.

The problem is related to a new W98 machine that we have just acquired.
While we've never had any problems with W95 machines, the new one just
refuses to connect.

I have tried a few of the tricks in DIAGNOSIS.txt, but to no avail.

1. Ping and WWW to the server works, so there clearly is an established
   connection.
2. W95 clients work flawlessly with the same setup (PPP dialup).
3. I have "encrypt passwords = yes", as required by W98.


It seems that the client never even attempts to connect to the server.

Doing a "NET VIEW" or "NET USE" on the client gives a "Not logged on"
error, while trying "NET LOGON" says ~"Can't logon from DOS-prompt"~.

How am I supposed to "log on" on the W98 client in order to be able
to make an SMB connection?

Has anyone else had this problem?