samba - Nov 2013 - Error: failed to setup guest info. Samba3x, no guest account can exist on system due to policies

I am trying setup our RHEL 5.5 servers to authenticate using AD. I cannot
for the life of me get Samba to run, it always fails with Error: failed to
setup guest info. The nobody account is not on the system,due to policies
NO GUEST ACCOUNTS can be on the system, if there is not a person linked to
the account, we had to delete the account. How do you solve this problem?