[Samba] Upgrade from samba 3.0.4 to 3.0.6 broke file sharing

[Schimcek, Derrick]

system is redhat 9 on a dell power edge 2450 running latest krb5 and
openldap rpm
It worked perfectly on 3.0.4 but arcserve wouldn't back up so I upgraded
to 306 and everything installed correctly but now when you try and
connect to the server it pops the user login box up. I can run net ads
user -U Administrator and log in with my admin password and it lists all
my user accounts. I can add and remove windows users from the file
system but when I try and connect from a windows client it will not
work. It also throws this error in the logs
 
[2004/08/25 09:59:51, 1]
libads/kerberos_verify.c:ads_secrets_verify_ticket(147)
  ads_secrets_verify_ticket: failed to fetch machine password
[2004/08/25 09:59:51, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 10:42:02, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
 smbd/sesssetup.c:reply_spnego_kerberos(173)
[2004/08/25 10:50:31, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 10:50:31, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 10:50:31, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 10:50:31, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 10:58:47, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 10:58:47, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 10:58:47, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 10:58:47, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 11:08:14, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 11:08:14, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!
[2004/08/25 11:08:14, 1] smbd/sesssetup.c:reply_spnego_kerberos(173)
  Failed to verify incoming ticket!