In the "#======================= Share Definitions
=======================" section of smb.conf exists the original [homes]
share from Debian which looks like this but is scattered throughout the
section:

[homes]
   comment = Home Directories
   browseable = no
   read only = yes
   create mask = 0700
   directory mask = 0700
   valid users = %S

Ubuntu usually comments out this share but in this case it was
incomplete. Only [homes], "comment = Home Directories", and "browseable
= no" were commented out.

This leaves "read only = yes", "create mask = 0700", "directory mask =
0700" and "valid users = %S" intact and interpreted by samba as global
parameters which makes a mess of things. In this particular bug report
having "valid users = %S" interpreted as a global parameter induces the
originally posted error message.

All of the [homes] share parameters must be commented out.

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https://bugs.launchpad.net/bugs/1261873

Title:
  'net usershare' returned error 255

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