Newbie: Why does SAMBA authentication fail?

I have a Debian Linux (2.6.18-4-686) box running Samba (3.0.24-6etch1).

The problem is I can't map a drive to it from my Win XP (sp2) box.
Are there any errors in the below config? Why is smbpasswd empty?
Suggestions? Thanks in advance.

Here are files:

myserver [/etc/samba] # ls - luchFA
total 16K
-rw-r--r-- 1 root root 8 2007-05-20 20:16 gdbcommands
-rw-r--r-- 1 root root 11K 2007-06-01 05:56 smb.conf
-rw-r--r-- 1 root root 0 2007-06-01 06:23 smbpasswd *** <<== this is empty.
myserver [/etc/samba] #

Here is output of testparam:

myserver [/etc/samba] # testparm -v
Load smb config files from /etc/samba/smb.conf
Processing section "[homes]"
Processing section "[printers]"
Processing section "[print$]"
Loaded services file OK.
Server role: ROLE_STANDALONE
Press enter to see a dump of your service definitions



[global]
dos charset = CP850
unix charset = UTF-8
display charset = LOCALE
workgroup = MYWRKGRP
realm = netbios name = MYSERVER
netbios aliases = netbios scope = server string = %h server
interfaces = bind interfaces only = No
security = USER
auth methods = encrypt passwords = Yes
update encrypted = No
client schannel = Auto
server schannel = Auto
allow trusted domains = Yes
map to guest = Never
null passwords = No
obey pam restrictions = Yes
password server = *
smb passwd file = /etc/samba/smbpasswd
private dir = /etc/samba
passdb backend = tdbsam
algorithmic rid base = 1000
root directory = guest account = nobody
enable privileges = Yes
pam password change = No
passwd program = passwd chat = *new*password* %n\n *new*password* %n\n *changed*
passwd chat debug = No
passwd chat timeout = 2
check password script = username map = password level = 0
username level = 0
unix password sync = No
restrict anonymous = 0
lanman auth = Yes
ntlm auth = Yes
client NTLMv2 auth = No
client lanman auth = Yes
client plaintext auth = Yes
preload modules = use kerberos keytab = No
log level = 0
syslog = 0
syslog only = No
log file = /var/log/samba/log.%m
max log size = 1000
debug timestamp = Yes
debug hires timestamp = No
debug pid = No
debug uid = No
enable core files = Yes
smb ports = 445 139
large readwrite = Yes
max protocol = NT1
min protocol = CORE
read bmpx = No
read raw = Yes
write raw = Yes
disable netbios = No
reset on zero vc = No
acl compatibility = auto
defer sharing violations = Yes
nt pipe support = Yes
nt status support = Yes
announce version = 4.9
announce as = NT
max mux = 50
max xmit = 16644
name resolve order = lmhosts host bcast
max ttl = 259200
max wins ttl = 518400
min wins ttl = 21600
time server = No
unix extensions = Yes
use spnego = Yes
client signing = auto
server signing = No
client use spnego = Yes
enable asu support = No
svcctl list = deadtime = 0
getwd cache = Yes
keepalive = 300
kernel change notify = Yes
fam change notify = Yes
lpq cache time = 30
max smbd processes = 0
paranoid server security = Yes
max disk size = 0
max open files = 10000
open files database hash size = 10007
socket options = TCP_NODELAY
use mmap = Yes
hostname lookups = No
name cache timeout = 660
load printers = Yes
printcap cache time = 750
printcap name = cups server = iprint server = disable spoolss = No
addport command = enumports command = addprinter command = deleteprinter command = show add printer wizard = Yes
os2 driver map = mangling method = hash2
mangle prefix = 1
max stat cache size = 0
stat cache = Yes
machine password timeout = 604800
add user script = rename user script = delete user script = add group script = delete group script = add user to group script = delete user from group script = set primary group script = add machine script = shutdown script = abort shutdown script = username map script = logon script = logon path = \\%N\%U\profile
logon drive = logon home = \\%N\%U
domain logons = No
os level = 20
lm announce = Auto
lm interval = 60
preferred master = Auto
local master = Yes
domain master = Auto
browse list = Yes
enhanced browsing = Yes
dns proxy = No
wins proxy = No
wins server = wins support = No
wins hook = kernel oplocks = Yes
lock spin count = 3
lock spin time = 10
oplock break wait time = 0
ldap admin dn = ldap delete dn = No
ldap group suffix = ldap idmap suffix = ldap machine suffix = ldap passwd sync = no
ldap replication sleep = 1000
ldap suffix = ldap ssl = ldap timeout = 15
ldap page size = 1024
ldap user suffix = add share command = change share command = delete share command = eventlog list = config file = preload = lock directory = pid directory = /var/run/samba
utmp directory = wtmp directory = utmp = No
default service = message command = get quota command = set quota command = remote announce = remote browse sync = socket address = 0.0.0.0
homedir map = auto.home
afs username map = afs token lifetime = 604800
log nt token command = time offset = 0
NIS homedir = No
usershare allow guests = No
usershare max shares = 0
usershare owner only = Yes
usershare path = /var/run/samba/usershares
usershare prefix allow list = usershare prefix deny list = usershare template share = panic action = /usr/share/samba/panic-action %d
host msdfs = Yes
passdb expand explicit = No
idmap backend = idmap uid = idmap gid = template homedir = /home/%D/%U
template shell = /bin/false
winbind separator = \
winbind cache time = 300
winbind enum users = No
winbind enum groups = No
winbind use default domain = No
winbind trusted domains only = No
winbind nested groups = Yes
winbind nss info = template
winbind refresh tickets = No
winbind offline logon = No
comment = path = username = invalid users = root
valid users = admin users = read list = write list = printer admin = force user = force group = read only = Yes
acl check permissions = Yes
acl group control = No
acl map full control = Yes
create mask = 0744
force create mode = 00
security mask = 0777
force security mode = 00
directory mask = 0755
force directory mode = 00
directory security mask = 0777
force directory security mode = 00
force unknown acl user = No
inherit permissions = No
inherit acls = No
inherit owner = No
guest only = No
guest ok = No
only user = No
hosts allow = hosts deny = allocation roundup size = 1048576
aio read size = 0
aio write size = 0
aio write behind = ea support = No
nt acl support = Yes
profile acls = No
map acl inherit = No
afs share = No
block size = 1024
change notify timeout = 60
max connections = 0
min print space = 0
strict allocate = No
strict sync = No
sync always = No
use sendfile = No
write cache size = 0
max reported print jobs = 0
max print jobs = 1000
printable = No
printing = bsd
cups options = print command = lpr -r -P'%p' %s
lpq command = lpq -P'%p'
lprm command = lprm -P'%p' %j
lppause command = lpresume command = queuepause command = queueresume command = printer name = use client driver = No
default devmode = Yes
force printername = No
default case = lower
case sensitive = Auto
preserve case = Yes
short preserve case = Yes
mangling char = ~
hide dot files = Yes
hide special files = No
hide unreadable = No
hide unwriteable files = No
delete veto files = No
veto files = hide files = veto oplock files = map archive = Yes
map hidden = No
map system = No
map readonly = yes
mangled names = Yes
mangled map = store dos attributes = No
dmapi support = No
browseable = Yes
blocking locks = Yes
csc policy = manual
fake oplocks = No
locking = Yes
oplocks = Yes
level2 oplocks = Yes
oplock contention limit = 2
posix locking = Yes
strict locking = Auto
share modes = Yes
dfree cache time = 0
dfree command = copy = include = preexec = preexec close = No
postexec = root preexec = root preexec close = No
root postexec = available = Yes
volume = fstype = NTFS
set directory = No
wide links = Yes
follow symlinks = Yes
dont descend = magic script = magic output = delete readonly = No
dos filemode = No
dos filetimes = Yes
dos filetime resolution = No
fake directory create times = No
vfs objects = msdfs root = Yes
msdfs proxy =



[homes]
comment = Home Directories
valid users = %S
read only = No
create mask = 0777
directory mask = 0777



[printers]
comment = All Printers
path = /var/spool/samba
create mask = 0700
printable = Yes
browseable = No



[print$]
comment = Printer Drivers
path = /var/lib/samba/printers
myserver [/etc/samba] #

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