[Samba] new to samba question

[M Azer]

Hello all,

I am using samba 3.0.10 on redhat. I am getting the following error when i
run "testparm" eventhough i have a "smbpasswd" file.

[root at localhost samba]# testparm
Load smb config files from /etc/samba/smb.conf
Processing section "[homes]"
Processing section "[public]"
Loaded services file OK.
ERROR: the 'unix password sync' parameter is set and the 'passwd program' ()
cannot be executed (error was No such file or directory).
ERROR: the 'passwd program' () requires a '%u' parameter.
Server role: ROLE_STANDALONE


# Global parameters
[global]
        workgroup = ITGROUP
        netbios name = ITBOX
        server string = Samba Test Server
        smb passwd file = /etc/samba/smbpasswd %u
        username map = /etc/samba/smbusers
        unix password sync = Yes
        log file = /var/log/samba/%m.log
        max log size = 50
        socket options = TCP_NODELAY SO_RCVBUF=8192 SO_SNDBUF=8192
        idmap uid = 16777216-33554431
        idmap gid = 16777216-33554431
        invalid users = root
        hosts allow = 192.168.1., 192.168.0., 127.

[homes]
        comment = %u Home Directory
        path = /home/%u
        read only = No
        browseable = No

[public]
        comment = Public
        path = /shares/public
        valid users = @public