I believe the current nautilus-share will install libpam-smbpass, which
will generate smb passwords based on your unix passwords. That's the
reason it asks you to restart your session upon installation. I'm
marking this as fix released. If you still see this issue (without
libpam-smbpass installed) feel free to reopen this bug.

** Changed in: nautilus-share (Ubuntu)
       Status: Confirmed => Fix Released

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nautilus-share permissions (samba password is not set)
https://bugs.launchpad.net/bugs/212970
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