samba - Nov 2002 - Can't become connected user!

More problems ...

I see others have describes this problem, but I can't see the solution.

WhenI try to connect to my samba server from Windows XP, I am unable to do
this, and the smb.log gives the error "Can't become connected
user!"

My smb.conf file looks like this now:

[global]
   comment = Music Samba %v
   server string = Music Samba %v (%h)
   workgroup = XXXXX
   netbios name = YYYYY

   log level = 2
   log file = /usr/localhost/samba/var/samba.log.%m
   max log size = 2000
   debug timestamp = yes

   load printers = yes
   printcap name = /usr/localhost/samba/printcap
   printing = sysv
   print command = lp -c -d%p -s %s ; rm %s
   printer admin = root

   guest account = nobody
   invalid users = root @root @sys
   browseable = yes

   hosts allow = ip.ip.ip.
   interfaces = ip.ip.ip.ip/255.255.255.0
   bind interfaces only = yes
   socket options = TCP_NODELAY

   domain logons = yes
   domain master = yes 
   local master = yes
   preferred master = yes
   os level = 34 
   wins support = no

   encrypt passwords = yes
   password level = 7

   time server = true

   locking = yes
   lock directory = /usr/localhost/samba/var/locks

   share modes = yes
   security = user
   logon path = \\%L\logon\%U

   preserve case = yes
   short preserve case = yes

[printers]
   comment = All Printers
   printable = yes
   path = /var/spool/samba
   guest ok = yes
   read only = yes
   create mask = 0700
   browseable = yes
   public = yes

[netlogon]
   comment = The domain logon service
   path = /usr/localhost/samba/users/logon
   public = no
   writeable = no
   browseable = no
[logon]
   comment = logon directories
   path    = /usr/localhost/sambausers/logon/%U
   writeable = false


If I try to connect using smbclient I get  NT_STATUS_WRONG_PASSWORD:

Any clues?

Robert