Martin, following line in your smb.conf should solve this problem:
encrypt passwords = yes
Ilya, I almost forgot to reply... sorry. I may not have mentioned on earlier postings that smbd was not running as I eventually discovered - only nmbd. I think my installation became a mess and since I'm able to do what I need for now using ssh and ftp from my workstation am content to leave it at that for the time being.
Thanks.
Marty Landman Face 2 Interface Inc 845-679-9387 Sign On Required: Web membership software for your site Make a Website: http://face2interface.com/Home/Demo.shtml
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