samba - Jul 2009 - smbclient failing: Server requested plaintext password...

I was using samba 3.0.35 and started using samba 3.2.13.

Now when I try to connect to my samba server (which has
'encrypted passwords = no') using smbclient, I get:

Server requested plaintext password but 'client plaintext auth' is
disabled
session setup failed: SUCCESS - 0


I tried 'smbclient -s foo.conf //server/dir' where foo.conf has:

[global]
      client plaintext auth = yes


But the results are the same.

What changed from 3.0.x to 3.2.x that might cause this, and how do I
configure smbclient to enable plaintext auth?

John Riesen <vndcfv03 <at> sneakemail.com> writes:
> 
> I was using samba 3.0.35 and started using samba 3.2.13.
> 
> Now when I try to connect to my samba server (which has
> 'encrypted passwords = no') using smbclient, I get:
> 
> Server requested plaintext password but 'client plaintext auth' is
disabled
> session setup failed: SUCCESS - 0

The bit of code that is complaining is:

        if ((cli->sec_mode & NEGOTIATE_SECURITY_CHALLENGE_RESPONSE) == 0)
{
                if (!lp_client_plaintext_auth() && (*pass)) {
                        DEBUG(1, ("Server requested plaintext password but
"
                                  "'client plaintext auth' is
disabled\n"));
                        return NT_STATUS_ACCESS_DENIED;

That's in source/libsmb/cliconnect.c

I haven't figured out yet why lp_client_plaintext_auth() is failing.
Hints welcome.