My first configuration with Samba as PDC

[Praise]

Hello List,
I am trying to turn my old samba server into a PDC.
I am using samba 2.0.7 on a suse linux 7.1

I have been following the "Using Samba" book to set everything
up, but the Win98SE and winME clients cannot authenticate.
When I set up the clients not to logon the domain, but only to 
the password protected shares, passwords work.
When the clients try to logon the domain, it says bad password.
I am using encrypted passwords.

Regards,
Praise