ERRSRV - ERR badpw

[IT.Helpdesk at lincolnelectric.com.au]

Can some-one please assist?

I am getting the following error message when ever a user attempts to change
their passwd using smbpasswd :

Connecting to 127.0.0.1 at port 139
machine 127.0.0.1 rejected the tconX on the IPC$ share. Error was : ERRSRV - ERR
badpw (Bad password - name/password pair in a Tree Connect or Session Setup are
invalid.).
Failed to change password for student1.

The passwd can be changed by root but not a user.
I do NOT have any hosts deny or hosts allow entries.
I have looked through doco's and can't find any reference to ERR badpw , even
though
it is obvious what it means, it is not obvious where the problem lies.  The
password
is the correct one.

A pointer to doco covering this would be greatly appreciated.

smb.conf is below :

[global]
        log level       = 3
        max log size    = 500
        log file        = /usr/local/samba/var/log.%m
        netbios name    = lecsydmk01
        server string   = Samba %v on %L
        workgroup       = LECAU
        security        = domain
        domain  logons  = yes
        password server = lecsyd01
        encrypt passwords = yes
        os level        = 15
        local master    = no
        lm announce     = no
        guest ok        = no
        valid users     = @samba
        username map    = /usr/local/samba/lib/username_map
        password level  = 5

[homes]
        browseable      = no
        writeable       = yes
        veto files      = /.?*/
        delete veto files = no

I have tried everything I can think of but just can't work out why the loopback
interface is
rejecting as a bad password.  The log files show that it has rejected user
'nobody', but
why is 'nobody' being validated (or who-ever I set up as a guest account).  The
users
have valid smb and unix passwds!  Log file is below if you are interested :

[2000/09/18 15:18:29, 3] smbd/process.c:process_smb(618)
  Transaction 1 of length 168
[2000/09/18 15:18:29, 3] smbd/process.c:switch_message(448)
  switch message SMBnegprot (pid 21442)
[2000/09/18 15:18:29, 3] smbd/negprot.c:reply_negprot(341)
  Requested protocol [PC NETWORK PROGRAM 1.0]
[2000/09/18 15:18:29, 3] smbd/negprot.c:reply_negprot(341)
  Requested protocol [MICROSOFT NETWORKS 1.03]
[2000/09/18 15:18:29, 3] smbd/negprot.c:reply_negprot(341)
  Requested protocol [MICROSOFT NETWORKS 3.0]
[2000/09/18 15:18:29, 3] smbd/negprot.c:reply_negprot(341)
  Requested protocol [LANMAN1.0]
[2000/09/18 15:18:29, 3] smbd/negprot.c:reply_negprot(341)
  Requested protocol [LM1.2X002]
[2000/09/18 15:18:29, 3] smbd/negprot.c:reply_negprot(341)
  Requested protocol [Samba]
[2000/09/18 15:18:29, 3] smbd/negprot.c:reply_negprot(424)
  Selected protocol NT LANMAN 1.0
[2000/09/18 15:18:29, 3] smbd/process.c:process_smb(618)
  Transaction 2 of length 78
[2000/09/18 15:18:29, 3] smbd/process.c:switch_message(448)
  switch message SMBsesssetupX (pid 21442)
[2000/09/18 15:18:29, 3] smbd/reply.c:reply_sesssetup_and_X(805)
  Domain=[]  NativeOS=[Unix] NativeLanMan=[Samba]
[2000/09/18 15:18:29, 3] smbd/reply.c:reply_sesssetup_and_X(809)
  sesssetupX:name=[]
[2000/09/18 15:18:29, 3] smbd/password.c:setup_groups(192)
  nobody is in 1 groups: 1
[2000/09/18 15:18:29, 3] smbd/password.c:register_vuid(270)
  uid -2 registered to name nobody
[2000/09/18 15:18:29, 3] smbd/password.c:register_vuid(272)
  Clearing default real name
[2000/09/18 15:18:29, 3] smbd/process.c:process_smb(618)
  Transaction 3 of length 69
[2000/09/18 15:18:29, 3] smbd/process.c:switch_message(448)
  switch message SMBtconX (pid 21442)
[2000/09/18 15:18:29, 2] lib/access.c:check_access(258)
  Allowed connection from localhost (127.0.0.1)
[2000/09/18 15:18:29, 3] smbd/password.c:authorise_login(816)
  ACCEPTED: guest account and guest ok
[2000/09/18 15:18:29, 0] smbd/password.c:authorise_login(826)
  rejected invalid user nobody
[2000/09/18 15:18:29, 2] smbd/service.c:make_connection(284)
  Invalid username/password for ipc$