samba - Sep 1998 - Error: "startlmhosts: Can't open lmhosts file..."

I've just installed Samba on Solaris 2.6 and am getting the following
lmhosts error:

***********************
# cd /usr/local/samba/bin
# ./smbclient -L myservername
Added interface ip=209.249.20.87 bcast=209.249.20.255 nmask=255.255.255.0
startlmhosts: Can't open lmhosts file /usr/local/samba/lib/lmhosts. Error
was No such file or directory
...
***********************

When typing from a PC:
net view \\myservername

I get:
System error 5 has occured.
Access is denied.

Any idea what is going on? Any help is greatly appreciated.


Here's my output from testparms:

***********************************
bal parameters
        debuglevel = 2
        syslog = 1
        syslog only = No
        protocol = NT1
        security = USER
        max disk size = 0
        lpq cache time = 10
        announce as = NT
        encrypt passwords = No
        update encrypted = No
        getwd cache = Yes
        read prediction = No
        read bmpx = Yes
        read raw = Yes
        write raw = Yes
        use rhosts = No
        load printers = Yes
        null passwords = No
        strip dot = No
        interfaces         bind interfaces only = No
        networkstation user login = No
        password server         socket options = TCP_NODELAY
        netbios name         netbios aliases         smbrun =
/usr/local/samba/bin/smbrun
        log file = /usr/local/samba/var/log.%m
        config file         smb passwd file = /usr/local/samba/private/smbpasswd
        hosts equiv         preload         server string = Samba Server
        printcap name = lpstat
        lock dir = /usr/local/samba/var/locks
        root directory = /
        default service         message command         dfree command        
passwd program = /usr/local/samba/bin/smbpasswd
        passwd chat = *old*password* %o\n *new*password* %n\n *new*password*
%n\n *changed*
        passwd chat debug = No
        valid chars         workgroup = WORKGROUP
        username map         character set         logon script         logon
path = \\%N\%U\profile
        logon drive         logon home = \\%N\%U
        remote announce = 209.249.20.86
        remote browse sync         socket address = 0.0.0.0
        homedir map         announce version = 4.2
        max log size = 50
        mangled stack = 50
        max mux = 50
        max xmit = 65535
        max packet = 65535
        name resolve order = lmhosts host wins bcast
        packet size = 65535
        password level = 0
        username level = 0
        keepalive = 0
        deadtime = 0
        time offset = 0
        read size = 16384
        shared mem size = 102400
        coding system         client code page = 850
        os level = 0
        max ttl = 14400
        max wins ttl = 259200
        min wins ttl = 21600
        lm announce = Auto
        lm interval = 60
        dns proxy = No
        wins support = No
        wins proxy = No
        wins server         preferred master = No
        local master = Yes
        domain master = No
        domain logons = No
        browse list = Yes
        unix realname = No
        NIS homedir = No
        unix password sync = No
        time server = No
        ole locking compatibility = Yes
        printer driver file = /usr/local/samba/lib/printers.def


# Default service parameters
        comment         copy         include         exec         postexec      
root preexec         root postexec         alternate permissions = No
        revalidate = No
        default case = lower
        case sensitive = No
        preserve case = No
        short preserve case = No
        mangle case = No
        mangling char = ~
        browseable = Yes
        available = Yes
        path         username         guest account = nobody
        invalid users         valid users         admin users         read list 
write list         volume         force user         force group         read
only = Yes
        max connections = 0
        min print space = 0
        create mask = 0744
        force create mode = 00
        directory mask = 0755
        force directory mode = 00
        set directory = No
        status = Yes
        hide dot files = Yes
        delete veto files = No
        veto files         hide files         veto oplock files         guest
only = No
        guest ok = No
        print ok = No
        postscript = No
        map system = No
        map hidden = No
        map archive = Yes
        locking = Yes
        strict locking = No
        share modes = Yes
        oplocks = Yes
        only user = No
        wide links = Yes
        follow symlinks = Yes
        sync always = No
        strict sync = No
        mangled names = Yes
        fake oplocks = No
        printing = sysv
        print command = lp -c -d%p %s; rm %s
        lpq command = lpstat -o%p
        lprm command = cancel %p-%j
        lppause command         lpresume command         queuepause command =
disable %p
        queueresume command = enable %p
        printer         printer driver = NULL
        printer driver location         hosts allow = 209.249.20. 127.
        hosts deny         dont descend         magic script         magic
output         mangled map         delete readonly = No
        dos filetimes = No
        dos filetime resolution = No
        fake directory create times = No

[homes]
        comment = Home Directories
        browseable = No
        read only = No

[printers]
        comment = All Printers
        browseable = No
        path = /usr/spool/samba
        print ok = Yes

[tmp]
        comment = Temporary file space
        path = /tmp

[franco]
        comment = Franco's Home Dir
        path = /home/ffinstad
        valid users = ffinstad
        read only = No

[IPC$]
        comment = IPC Service (Samba Server)
        path = /tmp
        status = No
        guest ok = Yes