samba - Mar 2000 - Dos-Linux connection via Lan Manager & Samba +Connection hang

Hi everyone!
I have been trying to set up a connection from my Linux server to my Dos PCs. I 
have configured my smb.conf and also the MS Lan Manager. The samba I am using 
is 2.0.3 and the Lan Manager I am using is ver 2.2b. 

Now, when I log into my Linux computer using Windows NT 4.0, everything is 
fine. I can map a network drive to the Linux server. However, when I try to use 
the Dos PC to log into the Linux server, I see the following error message: 
DOS error 86 has occurred.
The password entered is incorrect.

Here is the smb.conf of my Linux computer.

# Samba config file created using SWAT
# from ctss81.sgp.hp.com (15.66.193.3)
# Date: 2000/02/21 17:18:08

# Global parameters
	workgroup = ASIAPAC
	server string = Samba Server
	hosts allow = 15. 141.183.
	encrypt passwords = Yes
	smb passwd file = /etc/smbpasswd
	passwd program = /usr/bin/passwd %u
	passwd chat = *New*UNIX*password* %n\n *ReType*new*UNIX*password* %n\n 
*passwd:*all*authentication*tokens*updated*successfully*
	username map = /etc/smbusers
	unix password sync = Yes
	log file = /var/log/samba/log.%m
	max log size = 50
	socket options = TCP_NODELAY
	printcap name = /etc/printcap
	os level = 33
	local master = No
	dns proxy = No
	wins server = 15.68.14.2

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

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


Another problem that I noticed is that the connection always time out. The 
message displayed by PCs is:
NET805: Network device no longer exists reading drive H
and in the logs found in /var/logs/samba/ the error message is as follows:
lib/util_sock.c : read_data(376)
read_data : read failure. Error = Connection timed out

I would be really grateful if anyone has any ideas regarding the problems which 
I am facing now. 

Thanks a million!

Kaisheng