SWAT: Authentication Failure

[secret]

I recently tried to install swat, it's working with the "-a"(no
authentication) flag, but with authentication it fails miserably.  Here
is some information about my setup:

Samba directory: /home/samba
Encrypted Passwords: Yes
Samba version: 2.0.7
Kernel: Linux tau.kearneydev.com 2.2.12 #1 Fri Sep 17 13:02:27 EDT 1999
i686 unknown
Distribution: Redhat 5.2

I've tried dozens of time, I am typing the password for root correctly,
as well as other users... They all fail.... I've checked the logs and
there are no errors... It must not be looking in /etc/passwd or
/home/samba/private/smbpasswd for the passwords or it would let me in.

Any hints on resolving this would be appreciated.

David Secret
MIS Director
Kearney Development Co., Inc.