[Samba] Can not add users to samba 3.0

[lovswr1]

Hello, I can not seem to get smbpsswd to add any users to samba.  No
matter if I use the CLI, the Webmin module or SWAT I always get this
response when trying to add any user

[root at matrix1 samba]# smbpasswd -m -a gerard
Failed initialise SAM_ACCOUNT for user gerard$.
Failed to modify password entry for user gerard$


I take it this has somehting to do with PAM & or shadow passwords, & I
have been lookig for a about a week & the best that I can find anything
related to this 'SAM_ACCOUNT' that resembles my problem, is that I need
to make sure that ./configure (I have no idea which ./confiugure it is
although I suspect that it is the one from a manual build of samba.
Since mine was installed along wtih a bunch of other stuff when I
upgraded from RH9 to fedore core 1, I have no idea where it might be) 
has PAM & or shadow options enabled.  Any help in this matter would be
greatly appreciated.


# Global parameters
[global]
	encrypt passwords = yes
	unix password sync = yes
	security = SHARE
	preferred master = Yes
	log file = /var/log/samba/%m.log
	passwd chat = *New*password* %n\n *Retype*new*password* %n\n
*passwd:*all*authentication*tokens*updated*successfully*
	server string = Samba Server
	pam password change = Yes
	passwd program = /usr/bin/passwd %u
	socket options = TCP_NODELAY SO_SNDBUF=8192 SO_RCVBUF=8192
	dns proxy = No
	workgroup = MATRIX
	ldap ssl = no
	valid users = gerard, lovswr, marlene, vswr
	max log size = 0
	printing = cups
	hosts allow = pc2, freebsd, matrix1
	guest account =

[homes]
	comment = Home Directories
	path = /home/public
	read only = No
	create mask = 0664
	directory mask = 0775
	guest ok = Yes

[printers]
	comment = All Printers
	path = /var/spool/samba
	printable = Yes
	browseable = No