[Samba] i need help on samba installation

[Banoba Ezra]

i've installed samba on my server and placed the smb.conf in the
/usr/local/samba/lib/
testparms runs okay.
But when i try to list the shares on the server, the first line of the
output is
'can't find include file /usr/local/samba/lib/smb.conf'
though i get the list of shares.
Also smbpasswd claims it can't edit the passwd file for the user. and i
can't access the server from any of the windowds workstations;as in
permission denied.
what could be the problem?