[Samba] question about smb flag2

[Dan Wong]

I'm trying to get authentication to work with security=ADS with samba
3.0.25b
The ads join worked and wbinfo -u sees all users correctly.

smbclient -L localhost with user/password failed with
NT_STATUS_LOGON_FAILURE
I know for sure that user/password is correct.

I turned up samba logging and found that make_user_info_map and
check_ntlm_password was never called (no traces in log file).

I'm thinking that samba is trying to  authenticate with the local passdb due
to some stale configuration problems.

>From the logs I saw smbd/sesssetup.c:reply_sesssetup_and_x(1244) wct=12
flg2=0xc801

what is flg2 and does that indicate anything about authenticating locally
with passdb?
on another samba server authenticating correctly with AD flg2=0xc805.