[Samba] Winbind Authentication

[support]

I am trying to authenticate from a linux box to NT 4 DC.

I am using RH 9 with all the updates (Samba was preinstall apparently
via RPM).

Basically winbind doesn't appear to be encrypting the password when sent
to the pdc.

Here are the results:
[root]# wbinfo -u
0xc0000022
[root]#

I also ran wbinfo -t and it says the secret is ok.

I also ran wbinfo -
[root]# wbinfo -a DOMAIN1+test%testpass
plaintext password authentication succeeded
[root]#

In my smb.conf I have:
workgroup=DOMAIN1
security=domain
password server=*
encrypt passwords=yes

Is there something I am missing?