G'day tonyoh888. Thanks for your suggestion!
Tried it out... Still unable to access...

I just found a little wrinkle that worked for me:
1. Add a Linux user.
2. Edit smb.conf and add to the global section
Restart samba
3.Use pdbedit -a <username> to create a Samba user in your password backend.
(If the user already exists, then first delete the user with pdbedit -x <username>)

It seems that LM hashes are not generated in the password backend if the lanman authorisation is not set in smb.conf.

G'day Allend. Finally.... Your method works!
Thanks a lot!

@simke: No wuckers cobber.
Sorry to hear that I am not the only one who still needs to work with this dinosaur operating system.

An End to Your Headaches
 

Please see http://www.troubleshooters.com/linux/win9x_samba.htm in regards to this problem. If only I would've found it 14 hours earlier it would have saved me an all-nighter and a client suffering through "manual sales" on the morning of their biggest sales day due to a downed POS system ;- (

Solution to Win98 to connect samba
 

Just change in smb.conf after backing up

os level = 2


Restart smb service and login from win98 to samba server.


Regards.
Tarique Muhiuddin
tarique_muhiuddin@hotmail.com