samba - Dec 2007 - configuration variables not parsed %L %U %m

I am doing the initial setup of a samba/ldap PDC with roaming profiles.  
After many "Windows cannot locate the server copy of your roaming 
profile ...path not found " errors, I changed //%L/profiles/%U/%m to 
//server/profiles/%U/%m and discovered that I now have a new directory 
on my server with exactly the following name:

/home/nt-profiles/%U/%m/

The variables %U and %m aren't being substituted out.  Presumably the 
reason I was getting the "path not found" errors was that %L also
wasn't
being parsed.

I am using smbd 3.0.23c

Thanks for any suggestions

Boldra