Once I added my username (already in unix) and password through Swat, I couldn't authenticate. I have "security=user, encrypt=yes". The log (since lost) showed that the password wouldn't check against either the LM or the NT fields in smbpasswd file. I used the command line smbpasswd command to delete my user and add it back in, using the same username and passwd. After that it authenticated fine. (Swat's doing some other weird things too. Like not letting me add a share. It seems flakey.)
Add Share bug has been fixed. the correct parameter for encrypting passwords is 'encrypt passwords = yes', not 'encrypt = yes'. Adding/removing users using SWAT works fine here.
originally reported against 3.0.0beta1. CLeaning out non-production release versions.
database cleanup