samba - Aug 2007 - no local users at all while in ADS mode

Hi all

am having problems I have my server configured as an ADS member.
however all the local users like root dont let me login at all.
I have created the relevent local smb user password with smbpasswd -a user

the smbpasswd file has been created in /var/lib/samba/private with the user
passwords in. but then trying to use smb shares with smbclient with the same
password returns

# smbclient -n \\linux01 -U root \\\\linux01\\homes
# Password: <root passwd>
# session setup failed: NT_STATUS_LOGON_FAILURE

any ideas on how to get local users and ADS users ?

[global]
        workgroup = MCKENNAGROUP
        realm = LOCAL.MCKENNAGROUP.CO.UK
        server string = Linux File Server
        interfaces = eth0, lo
        bind interfaces only = Yes
        security = ADS
        allow trusted domains = No
        client NTLMv2 auth = Yes
        client lanman auth = No
        client plaintext auth = No
        use kerberos keytab = Yes
        log level = 6
        max log size = 50
        debug timestamp = No
        smb ports = 445
        min protocol = NT1
        acl compatibility = win2k
        announce version = 4.99
        name resolve order = host bcast
        client signing = Yes
        server signing = Yes
        enable asu support = Yes
        deadtime = 15
        fam change notify = No
        socket options = TCP_NODELAY SO_SNDBUF=32768 SO_RCVBUF=32768
IPTOS_THROUGHPUT
        load printers = Yes
        printcap name = cups
        printing = cups
;       panic action = /etc/init.d/samba zap && /etc/init.d/samba start
        preferred master = No
        local master = No
        domain master = No
        enhanced browsing = No
        dns proxy = No
        ldap ssl = no
        host msdfs = No
        read only = No
        create mask = 0660
        security mask = 0770
        directory mask = 0770
        directory security mask = 0770
        use sendfile = Yes
        csc policy = disable

thanks 

Damien