samba - Mar 2002 - samba 2.2.0.0 config on aix with win2k encrypted password issues

I have samba 2.2.0.0 up and running on aix.
We have a win2k domain and I would like to be able to access shares from 
the aix server from the win2k pro workstations. I would like to 
authenticate using the PDC.

I can mount shares if there are no restirctions but as soon as I put 
restrictions in I get an error message either that the password is bad 
or the share is bad.

I have set encryption=yes as I understood that this would bypass any 
necessity to do any regedit on the workstations involved. I have set 
samba to server and pointed to our PDC, and have also set the samba conf 
to user and share. I have set up an smbpasswd file in two locations 
(both that set in the conf file and later to one in the private 
directory of /var/samba because I received error messages from there as 
well. I have set the smbpasswd as well using smbpasswd.
Am I thrashing here, missing bugs that have been fixed long since (we 
are using 2.2.0.0 because it is pre-packaged for aix) Is this an issue 
with the front end I am using (webmin or swat?) or am I missing some 
major step??