Samba is a product allowing you to connect your Linux systems to Windows systems for file and printer
sharing. By default the SMB protocol used by Samba sends passwords in clear text. Windows 98 and NT use
If you can't seem to connect from a Windows system on a Samba server, it might well be because the
Samba server doesn't know about the encrypted passwords.
You need to read the documentation about encryption in the Samba package. There is a utility to convert a
Linux /etc/passwd file to encrypted mode so Samba can support Windows encrypted passwords.
Note that Samba also works with Windows 3.1 and Windows 95, with no encryption.
"Windows Linux Tips: Samba with Windows 98 or NT 4"
Reference : techpraveen.com