samba - Nov 2005 - Unable to connect to the SAMBA Shares

SAMBA was installed on a SCO 5.0.6 several years ago. Logins were validated 
by an NT server ("DOMAIN") at the time. In March, the NT 4 server was 
replaced with a Windows 2003 server and the SAMBA sercurity was changed to 
"SERVER". Most of the users are not listed in the smbpasswd file and 
security is set to use the Samba user.

Since then, most users can attach to the shares without any problems.
I have one user who IS in the smbpasswd file but cannot attach to any of 
the shares. This user uses a Windows XPpro PC. Every time they try to 
connect, they get a Samba login box, the window's password is entered but 
the connection is refused and an entry in the /var/adm/syslog file like 
below is logged:

Nov 17 12:38:43 lsisysv smbd[16491]: [2005/11/17 12:38:43, 0] 
smbd/password.c:server_cryptkey(1054)
Nov 17 12:38:43 lsisysv smbd[16491]:   password server not available


I tried several times to reset the SAMBA Password using SWAT to no avail!
This users needs special rights to some the shares - that is the reason for 
the security.
#######################################
the smb.conf file is below:

# Global parameters
[global]
        workgroup = LANDSCAPESUPPLY
        security = SERVER
        encrypt passwords = Yes
        min passwd length = 0
        map to guest = Bad User
        null passwords = Yes
        password server = %m
        os level = 0
        preferred master = False
        local master = No
        domain master = False
        guest account = samba
        create mask = 0666
        directory mask = 0777

[apps]
        path = /apps/bin
        read only = No
        guest ok = Yes

[public]
        path = /home/public
        force user = samba
        read only = No
        guest ok = Yes

[tmp]
        path = /tmp
        read only = No
        guest ok = Yes

[home]
        path = %H
        read only = No

[siqoutput]
        path = /home/output
        read only = No
        guest ok = Yes

[photos]
        path = /home/public/photos
        force user = samba
        read only = No
        guest ok = Yes
#######################################

Any ideas on how to solve this issue????

Rob Schultz
Randall Data Systems, Inc.
v 248.488.9700
f 248.488.3600

> Nov 17 12:38:43 lsisysv smbd[16491]:   password server not available
>         password server = %m
> Any ideas on how to solve this issue????
Why is the password server set to %m?  Isn't that the name of the
connecting machine?  Shouldn't it be the name of the 2003 server?

Cheers,
Adam.