Window 98 client can not login to the share, always get the response: password incorrect. However window XP can access the share as normal using the same account. The same window 98 box can access a share running samba 3.0.26a (Ubuntu 7.10).
remove samba package, get the source 3.0.26a and compile ; run it alsao fix the problem.
System is debian sid, the samba 3.0.28a is from the debian repository.
Just tried it -- work fine for me. I'm closing with WORKSFORME, if you can provide your smb.conf and a debug level 10 log of the smbd failing, please re-open.
Did you test with physiacl window 98 box?
In my case, this is win98 box runs on vmware machine, do not know if it matters.
The config is pretty default one shipped with distro, just uncomment some lines to enable home user directory, and read-write permission. Not to use Unix password sync. Normal debug level does not show any useful error message. I will reinstall the package and test again but it will take some time.
I did test with VMware Server