samba - Feb 2011 - smbclient -L -N results in NT_STATUS_INVALID_PARAMETER

hello *

Problem: 

[root at darwin lib]# smbclient -L localhost -N

session setup failed: NT_STATUS_INVALID_PARAMETER

samba version: Samba 3.4.9 ( any version > 3.4 probably will show this
behaviour )

cause of this response is this entry in smb.conf:

encrypt passwords = No

as soon as this parameter is commented out smbclient -L -N works as expected

A "clean" default smb.conf was used for this test, except for the
above parameter

-is this behaviour intented ? If so, any hints why ?

comments: 

that setting the above paramter is not best practice is clear :-)
end customer has this config and asked why, when changing to samba 3.4
his prevously working monitoring ( variation of smbclient -N ) did not work any
more

the other global settings were:

security=user
workgroup = MYGROUP
passdb backend = tdbsam

TIA
Michael









TIA
Micha