When a "dir" is done on an empty directory in samba share from a Win98SE at dos prompt (either using the prompt level) or any other software that uses it returns this extended error on the directory. This causes "sync" software to bounce.
THis problme was not there in Redhat 8 and Redhat 9.
This is a very old version of Samba. I suggest you upgrade as I recall fixing this. If the bug still exists with 3.0.21c then please reopen.