>
> I'm at a loss.  Any help appreciated.
>
>
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It has to work with this. Check /var/log/samba/log.smb

It's possible that you created user klsmith doesn't have access to
/home/klsmith - try logging on thru telnet. What are the privileges for
/home/klsmith?

Comes to my mind that you may have more than 1 smb.conf file and the one
that you are changing isn't the one that it is using (or smbpasswd) Encrypt
passwords = yes is absolutely necessary - except I believe that the original
version of Windows 95 didn't use encryption on passwords.

Post up your smb.conf file and log.smb file.

Craig