WinXP AD users can't connect via SMB

Question

Server is an Intel Xserve, 10.5.8.
Windows users get authentication errors when attempting to connect via SMB on the Mac server. The server is bound to Active Directory, and the Mac users are able to connect via AFP just fine. Macs also cannot connect via SMB. I get the error message "NTSTATUS_WRONGPASSWORD" when the user attempts to log in.
Local users are able to connect via SMB, but I don't want to re-enter a dozen or so PC users on this server if I can avoid it.
In the /var/db/smb.conf file there is an entry for a password server that may not be correct, but if I change it to the password server I've been instructed to use, the file flips back to the original setting when I stop and start the SMB service. I think if I make changes to the /etc/smb.conf file outside the END section, where the comments say to make changes, they will carry over to /var/db/smb.conf, but I'm not sure of the syntax.
If you need me to post the testparm output I can do that.

Answer 1

You're going to have to look into potential underlying issues.
I don't know what's happened for you, but I have an identical type setup for a client done over a year ago and no such problems have occurred.
What does the UNEDITED (please !) result of (using the Terminal) the following show:
cat /Library/Preferences/edu.mit.Kerberos
What happens when a user can't connect (error message, loginwindow shake) ? Are all client machines & the server using a common (eg internal) time-server ?
Be sure to see http://docs.info.apple.com/article.html?artnum=300765
And certainly read through Bombich' excellent PDF (click on the icon of it) at
http://www.bombich.com/mactips/activedir.html - esp. the troubleshooting section
for when a user is unable to login.
Currently, I'm not able to check/verify the settings for any of the servers I've setup for clients in a "magic triangle" setting. I'm not certain about the "passwordserver" entry,
on the one hand the actual passwordserver is actually part of