OK Jerry, I think I got it sorted.  The documentation in Chap 17 says:
    Problems With LDAP ldapsam And The smbldap-tools
    If you use the smbldap-useradd.pl script to create a trust account 
to set up Interdomain trusts the process of         setting up the trust 
will fail. The account that was created in the LDAP database will have 
an account flags         field that has [W ], when it must have [I ] for 
Interdomain trusts to work.
    Answer: Here is a simple solution. Create a machine account as follows:
    root#  smbldap-useradd.pl -w domain_name
    Then set the desired trust account password as shown here:
    root#  smbldap-passwd.pl domain_name\$
I think it needs to be clear that domain_name here is the NetBIOS name 
of the w2k domain and not the samba domain.