sorry for taking so long to respond - anywho, do you have the global section?
this is an example, i have the security set to user and it has worked well for me. i have not needed it for a while though...
workgroup = MYGROUP
server string = Samba Server
# This option is important for security. It allows you to restrict
# connections to machines which are on your local network. The
# following example restricts access to two C class networks and
# the "loopback" interface. For more examples of the syntax see
# the smb.conf man page
; hosts allow = 192.168.1. 192.168.2. 127.
# if you want to automatically load your printer list rather
# than setting them up individually then you'll need this
printcap name = /etc/printcap
load printers = yes
# It should not be necessary to spell out the print system type unless
# yours is non-standard. Currently supported print systems include:
# bsd, sysv, plp, lprng, aix, hpux, qnx, cups
printing = cups
# Uncomment this if you want a guest account, you must add this to /etc/passwd
# otherwise the user "nobody" is used
; guest account = pcguest
# this tells Samba to use a separate log file for each machine
# that connects
log file = /var/log/samba/%m.log
# Put a capping on the size of the log files (in Kb).
max log size = 0
# Security mode. Most people will want user level security. See
# security_level.txt for details.
security = user