[Samba] WindowsXP Home and Samba 2.2.3a connection problems

[Apolinaras 'Apollo' Sinkevicius]

OK, so I looked through all the archives and still can't find a solution.
My server is running RedHat 7.2 with all the latest patches, Samba is also 
latest 2.2.3a with domain masters set as "yes" and passwords NOT set as 
encrypt, because when I do turn it on, none of the Win98 boxes can log on 
(even when I tried to create non-blank password account). All Win98 boxes 
login flawlesly, since all of them use blank passwords/no passwords (for 
now), but now I got 1 XP Home edition box and I am really not willing to go 
and change things on lots of boxes just for this computer.
Here is what I tried:
I did apply the "signandseal" patch for XP that comes with Samba. I tried 
to log-in. Nothing...
I tried to turn on the encrypted passwrods on samba and import the 
user/password data with smbpasswd program. No luck, even if I enter the 
right username and password, it keeps on poping back-up asking for 
username/password info.
Any ideas?
Thanx