samba - Sep 2004 - samba client warning for HELP password transmitted with no encryption

Hello, 

I am newbie in linux, and have security problems 
with samba. I installed samba server on a box b1 
(v2.2.7a), and samba client is not my last and 
second box b2. They both run under linux (RH9 
distribution). It seems to be installed correctly, 
but I have 2 strange things: 
1) I cannot locate why when I get a connection with 
nautilus, the popup window tells me that password 
will be transmitted with no encryption. 
2) When I start samba in nautilus, the popup window 
asking for a user/password re-opens twice after I 
have filled it for the very 1st time.
Does somebody know why it reopens? Filling again 
and clicking OK, or clicking Cancel has the same 
effect: I can access.

Is this a bug, or a bad configuration? I have set a 
smbpasswd file on samba server, and did the 
procedure to migrate passwords from linux to samba. 
Can I have some advices, please ? 

Thanks, xavier.