I just ran into this same thing.  You need to add PAM support for swat on your 
linux system.  I forget the exact file and directives you need, but I found 
them in the samba-ntdom mailing list archives available on the samba website.
Also, the SAMS "TYS Samba in 24 hours" book mentions them as well.
(It's also a great book for anyone needing help with samba!  Between John
Blair's book and this one, there's little left uncovered!)
-- 
Seeya,
Paul
----
plussier@baynetworks.com
Broadband Technology Division - Bay Networks (now a Nortel Company, Eh? :)
	If you're not having fun, you're not doing it right!