Transport endpoint is not connected

[jaymzter]

I just upgraded an intranet server from 2.2 to 3.0 on FC2. Security was set to 'server', and domain users had no trouble connecting to shares. after the upgrade everyone is getting challenged for a password. I even copied a smb.conf file from another 3.x working samba server and still getting this issue. The relevant error is:

[2004/11/01 15:48:09, 0] lib/util_sock.c:send_smb(647)
  Error writing 4 bytes to client. -1. (Connection reset by peer)
[2004/11/01 16:08:09, 0] lib/util_sock.c:get_peer_addr(1000)
  getpeername failed. Error was Transport endpoint is not connected
[2004/11/01 16:08:10, 0] lib/util_sock.c:write_socket_data(430)
  write_socket_data: write failure. Error = Connection reset by peer
[2004/11/01 16:08:10, 0] lib/util_sock.c:write_socket(455)

smb.conf:

[global]
        netbios name = opensourcerer
        smb passwd file = /etc/samba/smbpasswd
        wins server = w.x.y.z
        dns proxy = no
        encrypt passwords = yes
        socket options = TCP_NODELAY SO_RCVBUF=8192 SO_SNDBUF=8192
        password server = dc1, pdc, bdc01, dc01
        security = server
        workgroup = global
        server string = opensourcerer
        log file = /var/log/samba/%m.log
        load printers = yes
        default = homes
        remote browse sync = w.x.y.z

[homes]
   comment = Home Directories
   browseable = no
   writable = yes
   valid users = %S
   create mode = 0664
   directory mode = 0775

Click below for S8700 Media Server information

http://jaymzworld.yafd.net/pages/linux