[Samba] Why no Challenge /Response Authentication

[SMITH, Gregory C.]

In tracking down several odd things that are happening in our RedHat 7.3
Samba 2.2.8 environment I found that the users are only authenticating with
plaintext passwords.

If I run wbinfo -a auser%xxxx all I get back is:

"plaintext password authentication succeeded"

No mention of Challenge/Response at all.

In addition one of the three machines refuses to recognize the groups from
the Win2K PDC for commands like chgrp despite wbinfo -u, wbinfo -g and
getent group properly displaying the domain groups.

This has driven me nuts for several days now so any help would be
appreciated.