Changes all over the shop, but all towards:

 - NTLM2 support in the server
 - KEY_EXCH support in the server
 - variable length session keys.

In detail:

 - NTLM2 is an extension of NTLMv1, that is compatible with existing
domain controllers (unlike NTLMv2, which requires a DC upgrade).

 * This is known as 'NTLMv2 session security' *

(This is not yet implemented on the RPC pipes however, so there may
well still be issues for PDC setups, particuarly around password
changes.  We do not fully understand the sign/seal implications of
NTLM2 on RPC pipes.)

This requires modifications to our authentication subsystem, as we
must handle the 'challege' input into the challenge-response algorithm
being changed.  This also needs to be turned off for
'security=server', which does not support this.

- KEY_EXCH is another 'security' mechanism, whereby the session key
actually used by the server is sent by the client, rather than being
the shared-secret directly or indirectly.

- As both these methods change the session key, the auth subsystem
needed to be changed, to 'override' session keys provided by the
backend.

- There has also been a major overhaul of the NTLMSSP subsystem, to merge the 'client' and 'server' functions, so they both operate on a single structure.  This should help the SPNEGO implementation.

- The 'names blob' in NTLMSSP is always in unicode - never in ascii.
Don't make an ascii version ever.

- The other big change is to allow variable length session keys.  We
have always assumed that session keys are 16 bytes long - and padded
to this length if shorter.  However, Kerberos session keys are 8 bytes
long, when the krb5 login uses DES.

 * This fix allows SMB signging on machines not yet running MIT KRB5 1.3.1. *

- Add better DEBUG() messages to ntlm_auth, warning administrators of
misconfigurations that prevent access to the privileged pipe.  This
should help reduce some of the 'it just doesn't work' issues.

- Fix data_blob_talloc() to behave the same way data_blob() does when
passed a NULL data pointer.  (just allocate)


REMEMBER to make clean after this commit - I have changed plenty of data structures...
(This used to be commit f3bbc87b0dac63426cda6fac7a295d3aad810ecc)

9 files changed, 671 insertions, 383 deletions

diff --git a/source3/libsmb/cliconnect.c b/source3/libsmb/cliconnect.c
index b5f7b97ae8..a920a1b7ff 100644
--- a/source3/libsmb/cliconnect.c
+++ b/source3/libsmb/cliconnect.c
@@ -241,9 +241,16 @@ static BOOL cli_session_setup_plaintext(struct cli_state *cli, const char *user,
 	return True;
 }
 
-static void set_cli_session_key (struct cli_state *cli, DATA_BLOB session_key) 
+/**
+ * Set the user session key for a connection
+ * @param cli The cli structure to add it too
+ * @param session_key The session key used.  (A copy of this is taken for the cli struct)
+ *
+ */
+
+static void cli_set_session_key (struct cli_state *cli, const DATA_BLOB session_key) 
 {
-	memcpy(cli->user_session_key, session_key.data, MIN(session_key.length, sizeof(cli->user_session_key)));
+	cli->user_session_key = data_blob(session_key.data, session_key.length);
 }
 
 /****************************************************************************
@@ -311,7 +318,7 @@ static BOOL cli_session_setup_nt1(struct cli_state *cli, const char *user,
 			session_key = data_blob(NULL, 16);
 			SMBsesskeygen_ntv1(nt_hash, NULL, session_key.data);
 		}
-		cli_simple_set_signing(cli, session_key.data, nt_response); 
+		cli_simple_set_signing(cli, session_key, nt_response); 
 	} else {
 		/* pre-encrypted password supplied.  Only used for 
 		   security=server, can't do
@@ -373,14 +380,16 @@ static BOOL cli_session_setup_nt1(struct cli_state *cli, const char *user,
 
 	if (session_key.data) {
 		/* Have plaintext orginal */
-		set_cli_session_key(cli, session_key);
+		cli_set_session_key(cli, session_key);
 	}
 
 	ret = True;
 end:	
 	data_blob_free(&lm_response);
 	data_blob_free(&nt_response);
-	data_blob_free(&session_key);
+
+	if (!ret)
+		data_blob_free(&session_key);
 	return ret;
 }
 
@@ -484,19 +493,19 @@ static void use_in_memory_ccache(void) {
  Do a spnego/kerberos encrypted session setup.
 ****************************************************************************/
 
-static BOOL cli_session_setup_kerberos(struct cli_state *cli, const char *principal, const char *workgroup)
+static NTSTATUS cli_session_setup_kerberos(struct cli_state *cli, const char *principal, const char *workgroup)
 {
 	DATA_BLOB blob2, negTokenTarg;
-	unsigned char session_key_krb5[16];
+	DATA_BLOB session_key_krb5;
 	DATA_BLOB null_blob = data_blob(NULL, 0);
 	
 	DEBUG(2,("Doing kerberos session setup\n"));
 
 	/* generate the encapsulated kerberos5 ticket */
-	negTokenTarg = spnego_gen_negTokenTarg(principal, 0, session_key_krb5);
+	negTokenTarg = spnego_gen_negTokenTarg(principal, 0, &session_key_krb5);
 
 	if (!negTokenTarg.data)
-		return False;
+		return NT_STATUS_UNSUCCESSFUL;
 
 #if 0
 	file_save("negTokenTarg.dat", negTokenTarg.data, negTokenTarg.length);
@@ -509,9 +518,16 @@ static BOOL cli_session_setup_kerberos(struct cli_state *cli, const char *princi
 	/* we don't need this blob for kerberos */
 	data_blob_free(&blob2);
 
+	cli_set_session_key(cli, session_key_krb5);
+
 	data_blob_free(&negTokenTarg);
 
-	return !cli_is_error(cli);
+	if (cli_is_error(cli)) {
+		if (NT_STATUS_IS_OK(cli_nt_error(cli))) {
+			return NT_STATUS_UNSUCCESSFUL;
+		}
+	} 
+	return NT_STATUS_OK;
 }
 #endif	/* HAVE_KRB5 */
 
@@ -520,10 +536,10 @@ static BOOL cli_session_setup_kerberos(struct cli_state *cli, const char *princi
  Do a spnego/NTLMSSP encrypted session setup.
 ****************************************************************************/
 
-static BOOL cli_session_setup_ntlmssp(struct cli_state *cli, const char *user, 
+static NTSTATUS cli_session_setup_ntlmssp(struct cli_state *cli, const char *user, 
 				      const char *pass, const char *workgroup)
 {
-	struct ntlmssp_client_state *ntlmssp_state;
+	struct ntlmssp_state *ntlmssp_state;
 	NTSTATUS nt_status;
 	int turn = 1;
 	DATA_BLOB msg1;
@@ -534,21 +550,21 @@ static BOOL cli_session_setup_ntlmssp(struct cli_state *cli, const char *user,
 	cli_temp_set_signing(cli);
 
 	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_client_start(&ntlmssp_state))) {
-		return False;
+		return nt_status;
 	}
 
 	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_set_username(ntlmssp_state, user))) {
-		return False;
+		return nt_status;
 	}
 	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_set_domain(ntlmssp_state, workgroup))) {
-		return False;
+		return nt_status;
 	}
 	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_set_password(ntlmssp_state, pass))) {
-		return False;
+		return nt_status;
 	}
 
 	do {
-		nt_status = ntlmssp_client_update(ntlmssp_state, 
+		nt_status = ntlmssp_update(ntlmssp_state, 
 						  blob_in, &blob_out);
 		data_blob_free(&blob_in);
 		if (NT_STATUS_EQUAL(nt_status, NT_STATUS_MORE_PROCESSING_REQUIRED)) {
@@ -562,18 +578,27 @@ static BOOL cli_session_setup_ntlmssp(struct cli_state *cli, const char *user,
 			}
 		
 			cli_simple_set_signing(cli, 
-					       ntlmssp_state->session_key.data, 
+					       data_blob(ntlmssp_state->session_key.data, ntlmssp_state->session_key.length), 
 					       null_blob); 
 			
 			/* now send that blob on its way */
 			if (!cli_session_setup_blob_send(cli, msg1)) {
-				return False;
+				DEBUG(3, ("Failed to send NTLMSSP/SPENGO blob to server!\n"));
+				nt_status = NT_STATUS_UNSUCCESSFUL;
+			} else {
+				data_blob_free(&msg1);
+				
+				blob = cli_session_setup_blob_receive(cli);
+				
+				nt_status = cli_nt_error(cli);
+				if (cli_is_error(cli) && NT_STATUS_IS_OK(nt_status)) {
+					if (cli->smb_rw_error == READ_BAD_SIG) {
+						nt_status = NT_STATUS_ACCESS_DENIED;
+					} else {
+						nt_status = NT_STATUS_UNSUCCESSFUL;
+					}
+				}
 			}
-			data_blob_free(&msg1);
-			
-			blob = cli_session_setup_blob_receive(cli);
-
-			nt_status = cli_nt_error(cli);
 		}
 		
 		if (!blob.length) {
@@ -606,24 +631,22 @@ static BOOL cli_session_setup_ntlmssp(struct cli_state *cli, const char *user,
 
 	if (NT_STATUS_IS_OK(nt_status)) {
 		fstrcpy(cli->server_domain, ntlmssp_state->server_domain);
-		set_cli_session_key(cli, ntlmssp_state->session_key);
+		cli_set_session_key(cli, ntlmssp_state->session_key);
 	}
 
 	/* we have a reference conter on ntlmssp_state, if we are signing
 	   then the state will be kept by the signing engine */
 
-	if (!NT_STATUS_IS_OK(ntlmssp_client_end(&ntlmssp_state))) {
-		return False;
-	}
-	
-	return (NT_STATUS_IS_OK(nt_status));
+	ntlmssp_end(&ntlmssp_state);
+
+	return nt_status;
 }
 
 /****************************************************************************
  Do a spnego encrypted session setup.
 ****************************************************************************/
 
-BOOL cli_session_setup_spnego(struct cli_state *cli, const char *user, 
+NTSTATUS cli_session_setup_spnego(struct cli_state *cli, const char *user, 
 			      const char *pass, const char *workgroup)
 {
 	char *principal;
@@ -651,7 +674,7 @@ BOOL cli_session_setup_spnego(struct cli_state *cli, const char *user,
 	   reply */
 	if (!spnego_parse_negTokenInit(blob, OIDs, &principal)) {
 		data_blob_free(&blob);
-		return False;
+		return NT_STATUS_INVALID_PARAMETER;
 	}
 	data_blob_free(&blob);
 
@@ -681,7 +704,7 @@ BOOL cli_session_setup_spnego(struct cli_state *cli, const char *user,
 			
 			if (ret){
 				DEBUG(0, ("Kinit failed: %s\n", error_message(ret)));
-				return False;
+				return NT_STATUS_LOGON_FAILURE;
 			}
 		}
 		
@@ -773,8 +796,14 @@ BOOL cli_session_setup(struct cli_state *cli,
 
 	/* if the server supports extended security then use SPNEGO */
 
-	if (cli->capabilities & CAP_EXTENDED_SECURITY)
-		return cli_session_setup_spnego(cli, user, pass, workgroup);
+	if (cli->capabilities & CAP_EXTENDED_SECURITY) {
+		NTSTATUS nt_status;
+		if (!NT_STATUS_IS_OK(nt_status = cli_session_setup_spnego(cli, user, pass, workgroup))) {
+			DEBUG(3, ("SPENGO login failed: %s\n", get_friendly_nt_error_msg(nt_status)));
+			return False;
+		}
+		return True;
+	}
 
 	/* otherwise do a NT1 style session setup */
 
diff --git a/source3/libsmb/clientgen.c b/source3/libsmb/clientgen.c
index 9b54acf775..0873700fc0 100644
--- a/source3/libsmb/clientgen.c
+++ b/source3/libsmb/clientgen.c
@@ -339,7 +339,7 @@ close the session
 void cli_nt_session_close(struct cli_state *cli)
 {
 	if (cli->ntlmssp_pipe_state) {
-		ntlmssp_client_end(&cli->ntlmssp_pipe_state);
+		ntlmssp_end(&cli->ntlmssp_pipe_state);
 	}
 
 	if (cli->nt_pipe_fnum != 0)
@@ -375,9 +375,10 @@ void cli_close_connection(struct cli_state *cli)
 
 	cli_free_signing_context(cli);
 	data_blob_free(&cli->secblob);
+	data_blob_free(&cli->user_session_key);
 
 	if (cli->ntlmssp_pipe_state) 
-		ntlmssp_client_end(&cli->ntlmssp_pipe_state);
+		ntlmssp_end(&cli->ntlmssp_pipe_state);
 
 	if (cli->mem_ctx) {
 		talloc_destroy(cli->mem_ctx);
diff --git a/source3/libsmb/clikrb5.c b/source3/libsmb/clikrb5.c
index 1fccc04a01..5568b5e033 100644
--- a/source3/libsmb/clikrb5.c
+++ b/source3/libsmb/clikrb5.c
@@ -307,7 +307,7 @@ cleanup_princ:
 /*
   get a kerberos5 ticket for the given service 
 */
-DATA_BLOB cli_krb5_get_ticket(const char *principal, time_t time_offset, unsigned char session_key_krb5[16])
+DATA_BLOB cli_krb5_get_ticket(const char *principal, time_t time_offset, DATA_BLOB *session_key_krb5)
 {
 	krb5_error_code retval;
 	krb5_data packet;
@@ -369,7 +369,7 @@ failed:
 	return data_blob(NULL, 0);
 }
 
- BOOL get_krb5_smb_session_key(krb5_context context, krb5_auth_context auth_context, uint8 session_key[16], BOOL remote)
+ BOOL get_krb5_smb_session_key(krb5_context context, krb5_auth_context auth_context, DATA_BLOB *session_key, BOOL remote)
  {
 	krb5_keyblock *skey;
 	krb5_error_code err;
@@ -383,11 +383,11 @@ failed:
 		err = krb5_auth_con_getlocalsubkey(context, auth_context, &skey);
 	if (err == 0 && skey != NULL) {
 		DEBUG(10, ("Got KRB5 session key of length %d\n",  KRB5_KEY_LENGTH(skey)));
-		if (KRB5_KEY_LENGTH(skey) == 16) {
-			memcpy(session_key, KRB5_KEY_DATA(skey), KRB5_KEY_LENGTH(skey));
-			dump_data_pw("KRB5 Session Key:\n", session_key, 16);
-			ret = True;
-		}
+		*session_key = data_blob(KRB5_KEY_DATA(skey), KRB5_KEY_LENGTH(skey));
+		dump_data_pw("KRB5 Session Key:\n", session_key->data, session_key->length);
+
+		ret = True;
+
 		krb5_free_keyblock(context, skey);
 	} else {
 		DEBUG(10, ("KRB5 error getting session key %d\n", err));
@@ -410,7 +410,7 @@ failed:
 
 #else /* HAVE_KRB5 */
  /* this saves a few linking headaches */
-DATA_BLOB cli_krb5_get_ticket(const char *principal, time_t time_offset, unsigned char session_key_krb5[16])
+DATA_BLOB cli_krb5_get_ticket(const char *principal, time_t time_offset, DATA_BLOB *session_key_krb5)
  {
 	 DEBUG(0,("NO KERBEROS SUPPORT\n"));
 	 return data_blob(NULL, 0);
diff --git a/source3/libsmb/clispnego.c b/source3/libsmb/clispnego.c
index 63076a1a1c..92543736ff 100644
--- a/source3/libsmb/clispnego.c
+++ b/source3/libsmb/clispnego.c
@@ -323,7 +323,7 @@ BOOL spnego_parse_krb5_wrap(DATA_BLOB blob, DATA_BLOB *ticket, uint8 tok_id[2])
    generate a SPNEGO negTokenTarg packet, ready for a EXTENDED_SECURITY
    kerberos session setup 
 */
-DATA_BLOB spnego_gen_negTokenTarg(const char *principal, int time_offset, unsigned char session_key_krb5[16])
+DATA_BLOB spnego_gen_negTokenTarg(const char *principal, int time_offset, DATA_BLOB *session_key_krb5)
 {
 	DATA_BLOB tkt, tkt_wrapped, targ;
 	const char *krb_mechs[] = {OID_KERBEROS5_OLD, OID_NTLMSSP, NULL};
diff --git a/source3/libsmb/ntlmssp.c b/source3/libsmb/ntlmssp.c
index c51b599b04..a0da1efcc1 100644
--- a/source3/libsmb/ntlmssp.c
+++ b/source3/libsmb/ntlmssp.c
@@ -23,6 +23,35 @@
 
 #include "includes.h"
 
+static NTSTATUS ntlmssp_client_initial(struct ntlmssp_state *ntlmssp_state, 
+				       DATA_BLOB reply, DATA_BLOB *next_request);
+static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
+					 const DATA_BLOB in, DATA_BLOB *out);
+static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state, 
+					 const DATA_BLOB reply, DATA_BLOB *next_request);
+static NTSTATUS ntlmssp_server_auth(struct ntlmssp_state *ntlmssp_state,
+				    const DATA_BLOB request, DATA_BLOB *reply);
+
+/**
+ * Callbacks for NTLMSSP - for both client and server operating modes
+ * 
+ */
+
+static const struct ntlmssp_callbacks {
+	enum NTLMSSP_ROLE role;
+	enum NTLM_MESSAGE_TYPE ntlmssp_command;
+	NTSTATUS (*fn)(struct ntlmssp_state *ntlmssp_state, 
+		       DATA_BLOB in, DATA_BLOB *out);
+} ntlmssp_callbacks[] = {
+	{NTLMSSP_CLIENT, NTLMSSP_INITIAL, ntlmssp_client_initial},
+	{NTLMSSP_SERVER, NTLMSSP_NEGOTIATE, ntlmssp_server_negotiate},
+	{NTLMSSP_CLIENT, NTLMSSP_CHALLENGE, ntlmssp_client_challenge},
+	{NTLMSSP_SERVER, NTLMSSP_AUTH, ntlmssp_server_auth},
+	{NTLMSSP_CLIENT, NTLMSSP_UNKNOWN, NULL},
+	{NTLMSSP_SERVER, NTLMSSP_UNKNOWN, NULL}
+};
+
+
 /**
  * Print out the NTLMSSP flags for debugging 
  * @param neg_flags The flags from the packet
@@ -71,7 +100,7 @@ void debug_ntlmssp_flags(uint32 neg_flags)
  *
  */
    
-static const uint8 *get_challenge(struct ntlmssp_state *ntlmssp_state)
+static const uint8 *get_challenge(const struct ntlmssp_state *ntlmssp_state)
 {
 	static uchar chal[8];
 	generate_random_buffer(chal, sizeof(chal), False);
@@ -80,6 +109,188 @@ static const uint8 *get_challenge(struct ntlmssp_state *ntlmssp_state)
 }
 
 /**
+ * Default 'we can set the challenge to anything we like' implementation
+ *
+ */
+   
+static BOOL may_set_challenge(const struct ntlmssp_state *ntlmssp_state)
+{
+	return True;
+}
+
+/**
+ * Default 'we can set the challenge to anything we like' implementation
+ *
+ * Does not actually do anything, as the value is always in the structure anyway.
+ *
+ */
+   
+static NTSTATUS set_challenge(struct ntlmssp_state *ntlmssp_state, DATA_BLOB *challenge)
+{
+	SMB_ASSERT(challenge->length == 8);
+	return NT_STATUS_OK;
+}
+
+/** 
+ * Set a username on an NTLMSSP context - ensures it is talloc()ed 
+ *
+ */
+
+NTSTATUS ntlmssp_set_username(NTLMSSP_STATE *ntlmssp_state, const char *user) 
+{
+	ntlmssp_state->user = talloc_strdup(ntlmssp_state->mem_ctx, user);
+	if (!ntlmssp_state->user) {
+		return NT_STATUS_NO_MEMORY;
+	}
+	return NT_STATUS_OK;
+}
+
+/** 
+ * Set a password on an NTLMSSP context - ensures it is talloc()ed 
+ *
+ */
+NTSTATUS ntlmssp_set_password(NTLMSSP_STATE *ntlmssp_state, const char *password) 
+{
+	if (!password) {
+		ntlmssp_state->password = NULL;
+	} else {
+		ntlmssp_state->password = talloc_strdup(ntlmssp_state->mem_ctx, password);
+		if (!ntlmssp_state->password) {
+			return NT_STATUS_NO_MEMORY;
+		}
+	}
+	return NT_STATUS_OK;
+}
+
+/** 
+ * Set a domain on an NTLMSSP context - ensures it is talloc()ed 
+ *
+ */
+NTSTATUS ntlmssp_set_domain(NTLMSSP_STATE *ntlmssp_state, const char *domain) 
+{
+	ntlmssp_state->domain = talloc_strdup(ntlmssp_state->mem_ctx, domain);
+	if (!ntlmssp_state->domain) {
+		return NT_STATUS_NO_MEMORY;
+	}
+	return NT_STATUS_OK;
+}
+
+/** 
+ * Set a workstation on an NTLMSSP context - ensures it is talloc()ed 
+ *
+ */
+NTSTATUS ntlmssp_set_workstation(NTLMSSP_STATE *ntlmssp_state, const char *workstation) 
+{
+	ntlmssp_state->workstation = talloc_strdup(ntlmssp_state->mem_ctx, workstation);
+	if (!ntlmssp_state->domain) {
+		return NT_STATUS_NO_MEMORY;
+	}
+	return NT_STATUS_OK;
+}
+
+/**
+ *  Store a DATA_BLOB containing an NTLMSSP response, for use later.
+ *  This copies the data blob
+ */
+
+NTSTATUS ntlmssp_store_response(NTLMSSP_STATE *ntlmssp_state,
+				DATA_BLOB response) 
+{
+	ntlmssp_state->stored_response = data_blob_talloc(ntlmssp_state->mem_ctx, 
+							  response.data, response.length);
+	return NT_STATUS_OK;
+}
+
+/**
+ * Next state function for the NTLMSSP state machine
+ * 
+ * @param ntlmssp_state NTLMSSP State
+ * @param in The packet in from the NTLMSSP partner, as a DATA_BLOB
+ * @param out The reply, as an allocated DATA_BLOB, caller to free.
+ * @return Errors, NT_STATUS_MORE_PROCESSING_REQUIRED or NT_STATUS_OK. 
+ */
+
+NTSTATUS ntlmssp_update(NTLMSSP_STATE *ntlmssp_state, 
+			const DATA_BLOB in, DATA_BLOB *out) 
+{
+	DATA_BLOB input;
+	uint32 ntlmssp_command;
+	int i;
+
+	*out = data_blob(NULL, 0);
+
+	if (!in.length && ntlmssp_state->stored_response.length) {
+		input = ntlmssp_state->stored_response;
+		
+		/* we only want to read the stored response once - overwrite it */
+		ntlmssp_state->stored_response = data_blob(NULL, 0);
+	} else {
+		input = in;
+	}
+
+	if (!input.length) {
+		switch (ntlmssp_state->role) {
+		case NTLMSSP_CLIENT:
+			ntlmssp_command = NTLMSSP_INITIAL;
+			break;
+		case NTLMSSP_SERVER:
+			/* 'datagram' mode - no neg packet */
+			ntlmssp_command = NTLMSSP_NEGOTIATE;
+			break;
+		}
+	} else {
+		if (!msrpc_parse(&input, "Cd",
+				 "NTLMSSP",
+				 &ntlmssp_command)) {
+			DEBUG(1, ("Failed to parse NTLMSSP packet, could not extract NTLMSSP command\n"));
+			dump_data(2, (const char *)input.data, input.length);
+			return NT_STATUS_INVALID_PARAMETER;
+		}
+	}
+
+	if (ntlmssp_command != ntlmssp_state->expected_state) {
+		DEBUG(1, ("got NTLMSSP command %u, expected %u\n", ntlmssp_command, ntlmssp_state->expected_state));
+		return NT_STATUS_INVALID_PARAMETER;
+	}
+
+	for (i=0; ntlmssp_callbacks[i].fn; i++) {
+		if (ntlmssp_callbacks[i].role == ntlmssp_state->role 
+		    && ntlmssp_callbacks[i].ntlmssp_command == ntlmssp_command) {
+			return ntlmssp_callbacks[i].fn(ntlmssp_state, input, out);
+		}
+	}
+
+	DEBUG(1, ("failed to find NTLMSSP callback for NTLMSSP mode %u, command %u\n", 
+		  ntlmssp_state->role, ntlmssp_command)); 
+
+	return NT_STATUS_INVALID_PARAMETER;
+}
+
+/**
+ * End an NTLMSSP state machine
+ * 
+ * @param ntlmssp_state NTLMSSP State, free()ed by this function
+ */
+
+void ntlmssp_end(NTLMSSP_STATE **ntlmssp_state)
+{
+	TALLOC_CTX *mem_ctx = (*ntlmssp_state)->mem_ctx;
+
+	(*ntlmssp_state)->ref_count--;
+
+	if ((*ntlmssp_state)->ref_count == 0) {
+		data_blob_free(&(*ntlmssp_state)->chal);
+		data_blob_free(&(*ntlmssp_state)->lm_resp);
+		data_blob_free(&(*ntlmssp_state)->nt_resp);
+
+		talloc_destroy(mem_ctx);
+	}
+
+	*ntlmssp_state = NULL;
+	return;
+}
+
+/**
  * Determine correct target name flags for reply, given server role 
  * and negotiated flags
  * 
@@ -107,6 +318,46 @@ static const char *ntlmssp_target_name(struct ntlmssp_state *ntlmssp_state,
 	}
 }
 
+static void ntlmssp_handle_neg_flags(struct ntlmssp_state *ntlmssp_state,
+				      uint32 neg_flags, BOOL allow_lm) {
+	if (neg_flags & NTLMSSP_NEGOTIATE_UNICODE) {
+		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_UNICODE;
+		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_OEM;
+		ntlmssp_state->unicode = True;
+	} else {
+		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_UNICODE;
+		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_OEM;
+		ntlmssp_state->unicode = False;
+	}
+
+	if (neg_flags & NTLMSSP_NEGOTIATE_LM_KEY && allow_lm) {
+		/* other end forcing us to use LM */
+		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_LM_KEY;
+		ntlmssp_state->use_ntlmv2 = False;
+	} else {
+		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_LM_KEY;
+	}
+
+	if (!(neg_flags & NTLMSSP_NEGOTIATE_NTLM2)) {
+		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_NTLM2;
+		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_LM_KEY;
+	}
+
+	if (!(neg_flags & NTLMSSP_NEGOTIATE_128)) {
+		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_128;
+	}
+
+	if (!(neg_flags & NTLMSSP_NEGOTIATE_KEY_EXCH)) {
+		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_KEY_EXCH;
+	}
+
+	if ((neg_flags & NTLMSSP_REQUEST_TARGET)) {
+		ntlmssp_state->neg_flags |= NTLMSSP_REQUEST_TARGET;
+	}
+	
+}
+
+
 /**
  * Next state function for the Negotiate packet
  * 
@@ -150,31 +401,27 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
 		debug_ntlmssp_flags(neg_flags);
 	}
 	
-	cryptkey = ntlmssp_state->get_challenge(ntlmssp_state);
+	ntlmssp_handle_neg_flags(ntlmssp_state, neg_flags, lp_lanman_auth());
 
-	data_blob_free(&ntlmssp_state->chal);
-	ntlmssp_state->chal = data_blob(cryptkey, 8);
-
-	/* Give them the challenge. For now, ignore neg_flags and just
-	   return the flags we want. Obviously this is not correct */
-	
-	chal_flags = 
-		NTLMSSP_NEGOTIATE_128 | 
-		NTLMSSP_NEGOTIATE_NTLM;
-	
-	if (neg_flags & NTLMSSP_NEGOTIATE_UNICODE) {
-		chal_flags |= NTLMSSP_NEGOTIATE_UNICODE;
-		ntlmssp_state->unicode = True;
-	} else {
-		chal_flags |= NTLMSSP_NEGOTIATE_OEM;
-	}
+	chal_flags = ntlmssp_state->neg_flags;
 
 	target_name = ntlmssp_target_name(ntlmssp_state, 
 					  neg_flags, &chal_flags); 
-
-	if (target_name == NULL)
+	if (target_name == NULL) 
 		return NT_STATUS_INVALID_PARAMETER;
 
+	/* Ask our caller what challenge they would like in the packet */
+	cryptkey = ntlmssp_state->get_challenge(ntlmssp_state);
+
+	/* Check if we may set the challenge */
+	if (!ntlmssp_state->may_set_challenge(ntlmssp_state)) {
+		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_NTLM2;
+	}
+
+	ntlmssp_state->chal = data_blob_talloc(ntlmssp_state->mem_ctx, cryptkey, 8);
+	ntlmssp_state->internal_chal = data_blob_talloc(ntlmssp_state->mem_ctx, cryptkey, 8);
+	
+
 	/* This should be a 'netbios domain -> DNS domain' mapping */
 	dnsdomname[0] = '\0';
 	get_mydomname(dnsdomname);
@@ -184,6 +431,7 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
 	get_myfullname(dnsname);
 	strlower_m(dnsname);
 	
+	/* This creates the 'blob' of names that appears at the end of the packet */
 	if (chal_flags & NTLMSSP_CHAL_TARGET_INFO) 
 	{
 		const char *target_name_dns = "";
@@ -194,16 +442,17 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
 		}
 
 		msrpc_gen(&struct_blob, "aaaaa",
-			  ntlmssp_state->unicode, NTLMSSP_NAME_TYPE_DOMAIN, target_name,
-			  ntlmssp_state->unicode, NTLMSSP_NAME_TYPE_SERVER, ntlmssp_state->get_global_myname(),
-			  ntlmssp_state->unicode, NTLMSSP_NAME_TYPE_DOMAIN_DNS, target_name_dns,
-			  ntlmssp_state->unicode, NTLMSSP_NAME_TYPE_SERVER_DNS, dnsdomname,
-			  ntlmssp_state->unicode, 0, "");
+			  NTLMSSP_NAME_TYPE_DOMAIN, target_name,
+			  NTLMSSP_NAME_TYPE_SERVER, ntlmssp_state->get_global_myname(),
+			  NTLMSSP_NAME_TYPE_DOMAIN_DNS, dnsdomname,
+			  NTLMSSP_NAME_TYPE_SERVER_DNS, dnsname,
+			  0, "");
 	} else {
 		struct_blob = data_blob(NULL, 0);
 	}
 
 	{
+		/* Marshel the packet in the right format, be it unicode or ASCII */
 		const char *gen_string;
 		if (ntlmssp_state->unicode) {
 			gen_string = "CdUdbddB";
@@ -240,13 +489,27 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
 static NTSTATUS ntlmssp_server_auth(struct ntlmssp_state *ntlmssp_state,
 				    const DATA_BLOB request, DATA_BLOB *reply) 
 {
-	DATA_BLOB sess_key;
-	uint32 ntlmssp_command, neg_flags;
+	DATA_BLOB encrypted_session_key = data_blob(NULL, 0);
+	DATA_BLOB nt_session_key = data_blob(NULL, 0);
+	DATA_BLOB lm_session_key = data_blob(NULL, 0);
+	DATA_BLOB session_key = data_blob(NULL, 0);
+	uint32 ntlmssp_command, auth_flags;
 	NTSTATUS nt_status;
 
+	/* used by NTLM2 */
+	BOOL doing_ntlm2 = False;
+
+	uchar session_nonce[16];
+	uchar session_nonce_hash[16];
+
 	const char *parse_string;
+	char *domain = NULL;
+	char *user = NULL;
+	char *workstation = NULL;
 
 	/* parse the NTLMSSP packet */
+	*reply = data_blob(NULL, 0);
+
 #if 0
 	file_save("ntlmssp_auth.dat", request.data, request.length);
 #endif
@@ -260,9 +523,9 @@ static NTSTATUS ntlmssp_server_auth(struct ntlmssp_state *ntlmssp_state,
 	data_blob_free(&ntlmssp_state->lm_resp);
 	data_blob_free(&ntlmssp_state->nt_resp);
 
-	SAFE_FREE(ntlmssp_state->user);
-	SAFE_FREE(ntlmssp_state->domain);
-	SAFE_FREE(ntlmssp_state->workstation);
+	ntlmssp_state->user = NULL;
+	ntlmssp_state->domain = NULL;
+	ntlmssp_state->workstation = NULL;
 
 	/* now the NTLMSSP encoded auth hashes */
 	if (!msrpc_parse(&request, parse_string,
@@ -270,18 +533,73 @@ static NTSTATUS ntlmssp_server_auth(struct ntlmssp_state *ntlmssp_state,
 			 &ntlmssp_command, 
 			 &ntlmssp_state->lm_resp,
 			 &ntlmssp_state->nt_resp,
-			 &ntlmssp_state->domain, 
-			 &ntlmssp_state->user, 
-			 &ntlmssp_state->workstation,
-			 &sess_key,
-			 &neg_flags)) {
+			 &domain, 
+			 &user, 
+			 &workstation,
+			 &encrypted_session_key,
+			 &auth_flags)) {
 		DEBUG(1, ("ntlmssp_server_auth: failed to parse NTLMSSP:\n"));
 		dump_data(2, (const char *)request.data, request.length);
-		return NT_STATUS_INVALID_PARAMETER;
+		SAFE_FREE(domain);
+		SAFE_FREE(user);
+		SAFE_FREE(workstation);
+		data_blob_free(&encrypted_session_key);
+		auth_flags = 0;
+		
+		/* Try again with a shorter string (Win9X truncates this packet) */
+		if (ntlmssp_state->unicode) {
+			parse_string = "CdBBUUU";
+		} else {
+			parse_string = "CdBBAAA";
+		}
+
+		/* now the NTLMSSP encoded auth hashes */
+		if (!msrpc_parse(&request, parse_string,
+				 "NTLMSSP", 
+				 &ntlmssp_command, 
+				 &ntlmssp_state->lm_resp,
+				 &ntlmssp_state->nt_resp,
+				 &domain, 
+				 &user, 
+				 &workstation)) {
+			DEBUG(1, ("ntlmssp_server_auth: failed to parse NTLMSSP:\n"));
+			dump_data(2, (const char *)request.data, request.length);
+			SAFE_FREE(domain);
+			SAFE_FREE(user);
+			SAFE_FREE(workstation);
+
+			return NT_STATUS_INVALID_PARAMETER;
+		}
 	}
 
-	data_blob_free(&sess_key);
-	
+	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_set_domain(ntlmssp_state, domain))) {
+		SAFE_FREE(domain);
+		SAFE_FREE(user);
+		SAFE_FREE(workstation);
+		data_blob_free(&encrypted_session_key);
+		return nt_status;
+	}
+
+	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_set_username(ntlmssp_state, user))) {
+		SAFE_FREE(domain);
+		SAFE_FREE(user);
+		SAFE_FREE(workstation);
+		data_blob_free(&encrypted_session_key);
+		return nt_status;
+	}
+
+	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_set_workstation(ntlmssp_state, workstation))) {
+		SAFE_FREE(domain);
+		SAFE_FREE(user);
+		SAFE_FREE(workstation);
+		data_blob_free(&encrypted_session_key);
+		return nt_status;
+	}
+
+	SAFE_FREE(domain);
+	SAFE_FREE(user);
+	SAFE_FREE(workstation);
+
 	DEBUG(3,("Got user=[%s] domain=[%s] workstation=[%s] len1=%lu len2=%lu\n",
 		 ntlmssp_state->user, ntlmssp_state->domain, ntlmssp_state->workstation, (unsigned long)ntlmssp_state->lm_resp.length, (unsigned long)ntlmssp_state->nt_resp.length));
 
@@ -290,9 +608,98 @@ static NTSTATUS ntlmssp_server_auth(struct ntlmssp_state *ntlmssp_state,
 	file_save("lmhash1.dat",  &ntlmssp_state->lm_resp.data,  &ntlmssp_state->lm_resp.length);
 #endif
 
-	nt_status = ntlmssp_state->check_password(ntlmssp_state);
+	/* NTLM2 uses a 'challenge' that is made of up both the server challenge, and a 
+	   client challenge 
 	
-	*reply = data_blob(NULL, 0);
+	   However, the NTLM2 flag may still be set for the real NTLMv2 logins, be careful.
+	*/
+	if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_NTLM2) {
+		if (ntlmssp_state->nt_resp.length == 24 && ntlmssp_state->lm_resp.length == 24) {
+			struct MD5Context md5_session_nonce_ctx;
+			SMB_ASSERT(ntlmssp_state->internal_chal.data && ntlmssp_state->internal_chal.length == 8);
+			
+			doing_ntlm2 = True;
+
+			memcpy(session_nonce, ntlmssp_state->internal_chal.data, 8);
+			memcpy(&session_nonce[8], ntlmssp_state->lm_resp.data, 8);
+			
+			MD5Init(&md5_session_nonce_ctx);
+			MD5Update(&md5_session_nonce_ctx, session_nonce, 16);
+			MD5Final(session_nonce_hash, &md5_session_nonce_ctx);
+			
+			ntlmssp_state->chal = data_blob_talloc(ntlmssp_state->mem_ctx, session_nonce_hash, 8);
+
+			/* LM response is no longer useful */
+			data_blob_free(&ntlmssp_state->lm_resp);
+
+			/* We changed the effective challenge - set it */
+			if (!NT_STATUS_IS_OK(nt_status = ntlmssp_state->set_challenge(ntlmssp_state, &ntlmssp_state->chal))) {
+				data_blob_free(&encrypted_session_key);
+				return nt_status;
+			}
+		}
+	}
+
+	/* Finally, actually ask if the password is OK */
+	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_state->check_password(ntlmssp_state, &nt_session_key, &lm_session_key))) {
+		data_blob_free(&encrypted_session_key);
+		return nt_status;
+	}
+
+	dump_data_pw("NT session key:\n", nt_session_key.data, nt_session_key.length);
+	dump_data_pw("LM first-8:\n", lm_session_key.data, lm_session_key.length);
+
+	/* Handle the different session key derivation for NTLM2 */
+	if (doing_ntlm2) {
+		if (nt_session_key.data && nt_session_key.length == 16) {
+			session_key = data_blob_talloc(ntlmssp_state->mem_ctx, NULL, 16);
+			hmac_md5(nt_session_key.data, session_nonce, 
+				 sizeof(session_nonce), session_key.data);
+			dump_data_pw("NTLM2 session key:\n", session_key.data, session_key.length);
+
+		}
+	} else if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_LM_KEY) {
+		if (lm_session_key.data && lm_session_key.length >= 8 && 
+		    ntlmssp_state->lm_resp.data && ntlmssp_state->lm_resp.length == 24) {
+			session_key = data_blob_talloc(ntlmssp_state->mem_ctx, NULL, 16);
+			SMBsesskeygen_lmv1(lm_session_key.data, ntlmssp_state->lm_resp.data, 
+					   session_key.data);
+			dump_data_pw("LM session key:\n", session_key.data, session_key.length);
+		}
+	} else if (nt_session_key.data) {
+		session_key = nt_session_key;
+		dump_data_pw("unmodified session key:\n", session_key.data, session_key.length);
+	}
+
+	/* With KEY_EXCH, the client supplies the proposed session key, 
+	   but encrypts it with the long-term key */
+	if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_KEY_EXCH) {
+		if (!encrypted_session_key.data || encrypted_session_key.length != 16) {
+			data_blob_free(&encrypted_session_key);
+			DEBUG(1, ("Client-supplied KEY_EXCH session key was of invalid length (%u)!\n", 
+				  encrypted_session_key.length));
+			return NT_STATUS_INVALID_PARAMETER;
+		} else if (!session_key.data || session_key.length != 16) {
+			DEBUG(5, ("server session key is invalid (len == %u), cannot do KEY_EXCH!\n", 
+				  session_key.length));
+		} else {
+			dump_data_pw("KEY_EXCH session key (enc):\n", encrypted_session_key.data, encrypted_session_key.length);
+			SamOEMhash(encrypted_session_key.data, 
+				   session_key.data, 
+				   encrypted_session_key.length);
+			ntlmssp_state->session_key = data_blob_talloc(ntlmssp_state->mem_ctx, 
+								      encrypted_session_key.data, 
+								      encrypted_session_key.length);
+			dump_data_pw("KEY_EXCH session key:\n", session_key.data, session_key.length);
+		}
+	} else {
+		ntlmssp_state->session_key = session_key;
+	}
+
+	data_blob_free(&encrypted_session_key);
+	
+	/* allow arbitarily many authentications */
+	ntlmssp_state->expected_state = NTLMSSP_AUTH;
 
 	return nt_status;
 }
@@ -316,8 +723,12 @@ NTSTATUS ntlmssp_server_start(NTLMSSP_STATE **ntlmssp_state)
 		return NT_STATUS_NO_MEMORY;
 	}
 
+	(*ntlmssp_state)->role = NTLMSSP_SERVER;
+
 	(*ntlmssp_state)->mem_ctx = mem_ctx;
 	(*ntlmssp_state)->get_challenge = get_challenge;
+	(*ntlmssp_state)->set_challenge = set_challenge;
+	(*ntlmssp_state)->may_set_challenge = may_set_challenge;
 
 	(*ntlmssp_state)->get_global_myname = global_myname;
 	(*ntlmssp_state)->get_domain = lp_workgroup;
@@ -325,73 +736,18 @@ NTSTATUS ntlmssp_server_start(NTLMSSP_STATE **ntlmssp_state)
 
 	(*ntlmssp_state)->expected_state = NTLMSSP_NEGOTIATE;
 
-	return NT_STATUS_OK;
-}
-
-/**
- * End an NTLMSSP state machine
- * 
- * @param ntlmssp_state NTLMSSP State, free()ed by this function
- */
-
-NTSTATUS ntlmssp_server_end(NTLMSSP_STATE **ntlmssp_state)
-{
-	TALLOC_CTX *mem_ctx = (*ntlmssp_state)->mem_ctx;
-
-	data_blob_free(&(*ntlmssp_state)->chal);
-	data_blob_free(&(*ntlmssp_state)->lm_resp);
-	data_blob_free(&(*ntlmssp_state)->nt_resp);
+	(*ntlmssp_state)->ref_count = 1;
 
-	SAFE_FREE((*ntlmssp_state)->user);
-	SAFE_FREE((*ntlmssp_state)->domain);
-	SAFE_FREE((*ntlmssp_state)->workstation);
+	(*ntlmssp_state)->neg_flags = 
+		NTLMSSP_NEGOTIATE_128 |
+		NTLMSSP_NEGOTIATE_NTLM |
+		NTLMSSP_NEGOTIATE_NTLM2 |
+		NTLMSSP_NEGOTIATE_KEY_EXCH |
+		NTLMSSP_NEGOTIATE_SIGN;
 
-	talloc_destroy(mem_ctx);
-	*ntlmssp_state = NULL;
 	return NT_STATUS_OK;
 }
 
-/**
- * Next state function for the NTLMSSP state machine
- * 
- * @param ntlmssp_state NTLMSSP State
- * @param request The request, as a DATA_BLOB
- * @param request The reply, as an allocated DATA_BLOB, caller to free.
- * @return Errors, NT_STATUS_MORE_PROCESSING_REQUIRED or NT_STATUS_OK. 
- */
-
-NTSTATUS ntlmssp_server_update(NTLMSSP_STATE *ntlmssp_state, 
-			       const DATA_BLOB request, DATA_BLOB *reply) 
-{
-	uint32 ntlmssp_command;
-	*reply = data_blob(NULL, 0);
-
-	if (request.length) {
-		if (!msrpc_parse(&request, "Cd",
-				 "NTLMSSP",
-				 &ntlmssp_command)) {
-			return NT_STATUS_INVALID_PARAMETER;
-		}
-	} else {
-		/* 'datagram' mode - no neg packet */
-		ntlmssp_command = NTLMSSP_NEGOTIATE;
-	}
-
-	if (ntlmssp_command != ntlmssp_state->expected_state) {
-		DEBUG(1, ("got NTLMSSP command %u, expected %u\n", ntlmssp_command, ntlmssp_state->expected_state));
-		return NT_STATUS_INVALID_PARAMETER;
-	}
-
-	if (ntlmssp_command == NTLMSSP_NEGOTIATE) {
-		return ntlmssp_server_negotiate(ntlmssp_state, request, reply);
-	} else if (ntlmssp_command == NTLMSSP_AUTH) {
-		return ntlmssp_server_auth(ntlmssp_state, request, reply);
-	} else {
-		DEBUG(1, ("unknown NTLMSSP command %u, expected %u\n", ntlmssp_command, ntlmssp_state->expected_state));
-		return NT_STATUS_INVALID_PARAMETER;
-	}
-}
-
 /*********************************************************************
  Client side NTLMSSP
 *********************************************************************/
@@ -405,11 +761,13 @@ NTSTATUS ntlmssp_server_update(NTLMSSP_STATE *ntlmssp_state,
  * @return Errors or NT_STATUS_OK. 
  */
 
-static NTSTATUS ntlmssp_client_initial(struct ntlmssp_client_state *ntlmssp_state, 
+static NTSTATUS ntlmssp_client_initial(struct ntlmssp_state *ntlmssp_state, 
 				  DATA_BLOB reply, DATA_BLOB *next_request) 
 {
 	if (ntlmssp_state->unicode) {
 		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_UNICODE;
+	} else {
+		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_OEM;
 	}
 	
 	if (ntlmssp_state->use_ntlmv2) {
@@ -426,6 +784,8 @@ static NTSTATUS ntlmssp_client_initial(struct ntlmssp_client_state *ntlmssp_stat
 		  ntlmssp_state->get_domain(), 
 		  ntlmssp_state->get_global_myname());
 
+	ntlmssp_state->expected_state = NTLMSSP_CHALLENGE;
+
 	return NT_STATUS_MORE_PROCESSING_REQUIRED;
 }
 
@@ -438,7 +798,7 @@ static NTSTATUS ntlmssp_client_initial(struct ntlmssp_client_state *ntlmssp_stat
  * @return Errors or NT_STATUS_OK. 
  */
 
-static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_state, 
+static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state, 
 					 const DATA_BLOB reply, DATA_BLOB *next_request) 
 {
 	uint32 chal_flags, ntlmssp_command, unkn1, unkn2;
@@ -469,17 +829,16 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_st
 	DEBUG(3, ("Got challenge flags:\n"));
 	debug_ntlmssp_flags(chal_flags);
 
-	if (chal_flags & NTLMSSP_NEGOTIATE_UNICODE) {
+	ntlmssp_handle_neg_flags(ntlmssp_state, chal_flags, lp_client_lanman_auth());
+
+	if (ntlmssp_state->unicode) {
 		if (chal_flags & NTLMSSP_CHAL_TARGET_INFO) {
 			chal_parse_string = "CdUdbddB";
 		} else {
 			chal_parse_string = "CdUdbdd";
 		}
 		auth_gen_string = "CdBBUUUBd";
-		ntlmssp_state->unicode = True;
-		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_UNICODE;
-		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_OEM;
-	} else if (chal_flags & NTLMSSP_NEGOTIATE_OEM) {
+	} else {
 		if (chal_flags & NTLMSSP_CHAL_TARGET_INFO) {
 			chal_parse_string = "CdAdbddB";
 		} else {
@@ -487,32 +846,6 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_st
 		}
 
 		auth_gen_string = "CdBBAAABd";
-
-		ntlmssp_state->unicode = False;
-		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_UNICODE;
-		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_OEM;
-	} else {
-		return NT_STATUS_INVALID_PARAMETER;
-	}
-
-	if (chal_flags & NTLMSSP_NEGOTIATE_LM_KEY && lp_client_lanman_auth()) {
-		/* server forcing us to use LM */
-		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_LM_KEY;
-		ntlmssp_state->use_ntlmv2 = False;
-	} else {
-		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_LM_KEY;
-	}
-
-	if (!(chal_flags & NTLMSSP_NEGOTIATE_NTLM2)) {
-		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_NTLM2;
-	}
-
-	if (!(chal_flags & NTLMSSP_NEGOTIATE_128)) {
-		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_128;
-	}
-
-	if (!(chal_flags & NTLMSSP_NEGOTIATE_KEY_EXCH)) {
-		ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_KEY_EXCH;
 	}
 
 	DEBUG(3, ("NTLMSSP: Set final flags:\n"));
@@ -546,6 +879,7 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_st
 
 		if (!struct_blob.length) {
 			/* be lazy, match win2k - we can't do NTLMv2 without it */
+			DEBUG(1, ("Server did not provide 'target information', required for NTLMv2\n"));
 			return NT_STATUS_INVALID_PARAMETER;
 		}
 
@@ -569,7 +903,7 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_st
 		uchar nt_session_key[16];
 		E_md4hash(ntlmssp_state->password, nt_hash);
 		
-		lm_response = data_blob(NULL, 24);
+		lm_response = data_blob_talloc(ntlmssp_state->mem_ctx, NULL, 24);
 		generate_random_buffer(lm_response.data, 8, False);
 		memset(lm_response.data+8, 0, 16);
 
@@ -580,16 +914,21 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_st
 		MD5Update(&md5_session_nonce_ctx, challenge_blob.data, 8);
 		MD5Update(&md5_session_nonce_ctx, lm_response.data, 8);
 		MD5Final(session_nonce_hash, &md5_session_nonce_ctx);
+
+		DEBUG(5, ("NTLMSSP challenge set by NTLM2\n"));
+		DEBUG(5, ("challenge is: \n"));
+		dump_data(5, session_nonce_hash, 8);
 		
-		nt_response = data_blob(NULL, 24);
+		nt_response = data_blob_talloc(ntlmssp_state->mem_ctx, NULL, 24);
 		SMBNTencrypt(ntlmssp_state->password,
 			     session_nonce_hash,
 			     nt_response.data);
 
-		session_key = data_blob(NULL, 16);
+		session_key = data_blob_talloc(ntlmssp_state->mem_ctx, NULL, 16);
 
 		SMBsesskeygen_ntv1(nt_hash, NULL, nt_session_key);
 		hmac_md5(nt_session_key, session_nonce, sizeof(session_nonce), session_key.data);
+		dump_data_pw("NTLM2 session key:\n", session_key.data, session_key.length);
 	} else {
 		
 		
@@ -600,22 +939,24 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_st
 		
 		/* lanman auth is insecure, it may be disabled */
 		if (lp_client_lanman_auth()) {
-			lm_response = data_blob(NULL, 24);
+			lm_response = data_blob_talloc(ntlmssp_state->mem_ctx, NULL, 24);
 			SMBencrypt(ntlmssp_state->password,challenge_blob.data,
 				   lm_response.data);
-			}
+		}
 		
-		nt_response = data_blob(NULL, 24);
+		nt_response = data_blob_talloc(ntlmssp_state->mem_ctx, NULL, 24);
 		SMBNTencrypt(ntlmssp_state->password,challenge_blob.data,
 			     nt_response.data);
 		
-		session_key = data_blob(NULL, 16);
+		session_key = data_blob_talloc(ntlmssp_state->mem_ctx, NULL, 16);
 		if ((ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_LM_KEY) 
 		    && lp_client_lanman_auth()) {
 			SMBsesskeygen_lmv1(lm_hash, lm_response.data, 
 					   session_key.data);
+			dump_data_pw("LM session key\n", session_key.data, session_key.length);
 		} else {
 			SMBsesskeygen_ntv1(nt_hash, NULL, session_key.data);
+			dump_data_pw("NT session key:\n", session_key.data, session_key.length);
 		}
 	}
 	data_blob_free(&struct_blob);
@@ -627,9 +968,12 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_st
 		
 		generate_random_buffer(client_session_key, sizeof(client_session_key), False);	
 		encrypted_session_key = data_blob(client_session_key, sizeof(client_session_key));
+		dump_data_pw("KEY_EXCH session key:\n", encrypted_session_key.data, encrypted_session_key.length);
+
 		SamOEMhash(encrypted_session_key.data, session_key.data, encrypted_session_key.length);
 		data_blob_free(&session_key);
-		session_key = data_blob(client_session_key, sizeof(client_session_key));
+		session_key = data_blob_talloc(ntlmssp_state->mem_ctx, client_session_key, sizeof(client_session_key));
+		dump_data_pw("KEY_EXCH session key (enc):\n", encrypted_session_key.data, encrypted_session_key.length);
 	}
 
 	/* this generates the actual auth packet */
@@ -644,28 +988,24 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_client_state *ntlmssp_st
 		       encrypted_session_key.data, encrypted_session_key.length,
 		       ntlmssp_state->neg_flags)) {
 		
-		data_blob_free(&lm_response);
-		data_blob_free(&nt_response);
-		data_blob_free(&session_key);
 		return NT_STATUS_NO_MEMORY;
 	}
 
 	data_blob_free(&encrypted_session_key);
 
 	data_blob_free(&ntlmssp_state->chal);
-	data_blob_free(&ntlmssp_state->lm_resp);
-	data_blob_free(&ntlmssp_state->nt_resp);
-	data_blob_free(&ntlmssp_state->session_key);
 
 	ntlmssp_state->chal = challenge_blob;
 	ntlmssp_state->lm_resp = lm_response;
 	ntlmssp_state->nt_resp = nt_response;
 	ntlmssp_state->session_key = session_key;
 
+	ntlmssp_state->expected_state = NTLMSSP_UNKNOWN;
+
 	return NT_STATUS_MORE_PROCESSING_REQUIRED;
 }
 
-NTSTATUS ntlmssp_client_start(NTLMSSP_CLIENT_STATE **ntlmssp_state)
+NTSTATUS ntlmssp_client_start(NTLMSSP_STATE **ntlmssp_state)
 {
 	TALLOC_CTX *mem_ctx;
 
@@ -678,6 +1018,8 @@ NTSTATUS ntlmssp_client_start(NTLMSSP_CLIENT_STATE **ntlmssp_state)
 		return NT_STATUS_NO_MEMORY;
 	}
 
+	(*ntlmssp_state)->role = NTLMSSP_CLIENT;
+
 	(*ntlmssp_state)->mem_ctx = mem_ctx;
 
 	(*ntlmssp_state)->get_global_myname = global_myname;
@@ -687,6 +1029,10 @@ NTSTATUS ntlmssp_client_start(NTLMSSP_CLIENT_STATE **ntlmssp_state)
 
 	(*ntlmssp_state)->use_ntlmv2 = lp_client_ntlmv2_auth();
 
+	(*ntlmssp_state)->expected_state = NTLMSSP_INITIAL;
+
+	(*ntlmssp_state)->ref_count = 1;
+
 	(*ntlmssp_state)->neg_flags = 
 		NTLMSSP_NEGOTIATE_128 |
 		NTLMSSP_NEGOTIATE_NTLM |
@@ -700,101 +1046,6 @@ NTSTATUS ntlmssp_client_start(NTLMSSP_CLIENT_STATE **ntlmssp_state)
 		NTLMSSP_NEGOTIATE_SIGN |
 		NTLMSSP_REQUEST_TARGET;
 
-	(*ntlmssp_state)->ref_count = 1;
-
-	return NT_STATUS_OK;
-}
-
-NTSTATUS ntlmssp_client_end(NTLMSSP_CLIENT_STATE **ntlmssp_state)
-{
-	TALLOC_CTX *mem_ctx = (*ntlmssp_state)->mem_ctx;
-
-	(*ntlmssp_state)->ref_count--;
-
-	if ((*ntlmssp_state)->ref_count == 0) {
-		data_blob_free(&(*ntlmssp_state)->chal);
-		data_blob_free(&(*ntlmssp_state)->lm_resp);
-		data_blob_free(&(*ntlmssp_state)->nt_resp);
-		data_blob_free(&(*ntlmssp_state)->session_key);
-		data_blob_free(&(*ntlmssp_state)->stored_response);
-		talloc_destroy(mem_ctx);
-	}
-
-	*ntlmssp_state = NULL;
 	return NT_STATUS_OK;
 }
 
-NTSTATUS ntlmssp_client_update(NTLMSSP_CLIENT_STATE *ntlmssp_state, 
-			       DATA_BLOB reply, DATA_BLOB *next_request) 
-{
-	NTSTATUS nt_status = NT_STATUS_INVALID_PARAMETER;
-	uint32 ntlmssp_command;
-	*next_request = data_blob(NULL, 0);
-
-	if (!reply.length) {
-		/* If there is a cached reply, use it - otherwise this is the first packet */
-		if (!ntlmssp_state->stored_response.length) {
-			return ntlmssp_client_initial(ntlmssp_state, reply, next_request);
-		}
-		
-		reply = ntlmssp_state->stored_response;
-	}
-
-	if (!msrpc_parse(&reply, "Cd",
-			 "NTLMSSP",
-			 &ntlmssp_command)) {
-		return NT_STATUS_INVALID_PARAMETER;
-	}
-
-	if (ntlmssp_command == NTLMSSP_CHALLENGE) {
-		nt_status = ntlmssp_client_challenge(ntlmssp_state, reply, next_request);
-	}
-	if (ntlmssp_state->stored_response.length) {
-		data_blob_free(&ntlmssp_state->stored_response);
-	}
-	return nt_status;
-}
-
-NTSTATUS ntlmssp_set_username(NTLMSSP_CLIENT_STATE *ntlmssp_state, const char *user) 
-{
-	ntlmssp_state->user = talloc_strdup(ntlmssp_state->mem_ctx, user);
-	if (!ntlmssp_state->user) {
-		return NT_STATUS_NO_MEMORY;
-	}
-	return NT_STATUS_OK;
-}
-
-NTSTATUS ntlmssp_set_password(NTLMSSP_CLIENT_STATE *ntlmssp_state, const char *password) 
-{
-	if (!password) {
-		ntlmssp_state->password = NULL;
-	} else {
-		ntlmssp_state->password = talloc_strdup(ntlmssp_state->mem_ctx, password);
-		if (!ntlmssp_state->password) {
-			return NT_STATUS_NO_MEMORY;
-		}
-	}
-	return NT_STATUS_OK;
-}
-
-NTSTATUS ntlmssp_set_domain(NTLMSSP_CLIENT_STATE *ntlmssp_state, const char *domain) 
-{
-	ntlmssp_state->domain = talloc_strdup(ntlmssp_state->mem_ctx, domain);
-	if (!ntlmssp_state->domain) {
-		return NT_STATUS_NO_MEMORY;
-	}
-	return NT_STATUS_OK;
-}
-
-/**
- *  Store a DATA_BLOB containing an NTLMSSP response, for use later.
- *  This 'keeps' the data blob - the caller must *not* free it.
- */
-
-NTSTATUS ntlmssp_client_store_response(NTLMSSP_CLIENT_STATE *ntlmssp_state,
-				       DATA_BLOB response) 
-{
-	data_blob_free(&ntlmssp_state->stored_response);
-	ntlmssp_state->stored_response = response;
-	return NT_STATUS_OK;
-}
diff --git a/source3/libsmb/ntlmssp_parse.c b/source3/libsmb/ntlmssp_parse.c
index b136dacf5a..3444db0306 100644
--- a/source3/libsmb/ntlmssp_parse.c
+++ b/source3/libsmb/ntlmssp_parse.c
@@ -31,7 +31,7 @@
   format specifiers are:
 
   U = unicode string (input is unix string)
-  a = address (input is BOOL unicode, char *unix_string)
+  a = address (input is char *unix_string)
       (1 byte type, 1 byte length, unicode/ASCII string, all inline)
   A = ASCII string (input is unix string)
   B = data blob (pointer + length)
@@ -49,7 +49,6 @@ BOOL msrpc_gen(DATA_BLOB *blob,
 	uint8 *b;
 	int head_size=0, data_size=0;
 	int head_ofs, data_ofs;
-	BOOL unicode;
 
 	/* first scan the format to work out the header and body size */
 	va_start(ap, format);
@@ -66,14 +65,9 @@ BOOL msrpc_gen(DATA_BLOB *blob,
 			data_size += str_ascii_charnum(s);
 			break;
 		case 'a':
-			unicode = va_arg(ap, BOOL);
 			n = va_arg(ap, int);
 			s = va_arg(ap, char *);
-			if (unicode) {
-				data_size += (str_charnum(s) * 2) + 4;
-			} else {
-				data_size += (str_ascii_charnum(s)) + 4;
-			}
+			data_size += (str_charnum(s) * 2) + 4;
 			break;
 		case 'B':
 			b = va_arg(ap, uint8 *);
@@ -124,27 +118,16 @@ BOOL msrpc_gen(DATA_BLOB *blob,
 			data_ofs += n;
 			break;
 		case 'a':
-			unicode = va_arg(ap, BOOL);
 			n = va_arg(ap, int);
 			SSVAL(blob->data, data_ofs, n); data_ofs += 2;
 			s = va_arg(ap, char *);
-			if (unicode) {
-				n = str_charnum(s);
-				SSVAL(blob->data, data_ofs, n*2); data_ofs += 2;
-				if (0 < n) {
-					push_string(NULL, blob->data+data_ofs, s, n*2,
-						    STR_UNICODE|STR_NOALIGN);
-				}
-				data_ofs += n*2;
-			} else {
-				n = str_ascii_charnum(s);
-				SSVAL(blob->data, data_ofs, n); data_ofs += 2;
-				if (0 < n) {
-					push_string(NULL, blob->data+data_ofs, s, n,
-						    STR_ASCII|STR_NOALIGN);
-				}
-				data_ofs += n;
+			n = str_charnum(s);
+			SSVAL(blob->data, data_ofs, n*2); data_ofs += 2;
+			if (0 < n) {
+				push_string(NULL, blob->data+data_ofs, s, n*2,
+					    STR_UNICODE|STR_NOALIGN);
 			}
+			data_ofs += n*2;
 			break;
 
 		case 'B':
diff --git a/source3/libsmb/ntlmssp_sign.c b/source3/libsmb/ntlmssp_sign.c
index 153c234d1f..ea1a7037c9 100644
--- a/source3/libsmb/ntlmssp_sign.c
+++ b/source3/libsmb/ntlmssp_sign.c
@@ -102,7 +102,7 @@ enum ntlmssp_direction {
 	NTLMSSP_RECEIVE
 };
 
-static NTSTATUS ntlmssp_make_packet_signature(NTLMSSP_CLIENT_STATE *ntlmssp_state,
+static NTSTATUS ntlmssp_make_packet_signature(NTLMSSP_STATE *ntlmssp_state,
 					      const uchar *data, size_t length, 
 					      enum ntlmssp_direction direction,
 					      DATA_BLOB *sig) 
@@ -113,7 +113,7 @@ static NTSTATUS ntlmssp_make_packet_signature(NTLMSSP_CLIENT_STATE *ntlmssp_stat
 		uchar digest[16];
 		SIVAL(seq_num, 0, ntlmssp_state->ntlmssp_seq_num);
 
-		hmac_md5_init_limK_to_64((const unsigned char *)(ntlmssp_state->cli_sign_const), 16, &ctx);
+		hmac_md5_init_limK_to_64((const unsigned char *)(ntlmssp_state->send_sign_const), 16, &ctx);
 		hmac_md5_update((const unsigned char *)seq_num, 4, &ctx);
 		hmac_md5_update(data, length, &ctx);
 		hmac_md5_final(digest, &ctx);
@@ -124,10 +124,10 @@ static NTSTATUS ntlmssp_make_packet_signature(NTLMSSP_CLIENT_STATE *ntlmssp_stat
 		}
 		switch (direction) {
 		case NTLMSSP_SEND:
-			NTLMSSPcalc_ap(ntlmssp_state->cli_sign_hash,  sig->data+4, sig->length-4);
+			NTLMSSPcalc_ap(ntlmssp_state->send_sign_hash,  sig->data+4, sig->length-4);
 			break;
 		case NTLMSSP_RECEIVE:
-			NTLMSSPcalc_ap(ntlmssp_state->srv_sign_hash,  sig->data+4, sig->length-4);
+			NTLMSSPcalc_ap(ntlmssp_state->recv_sign_hash,  sig->data+4, sig->length-4);
 			break;
 		}
 	} else {
@@ -144,9 +144,9 @@ static NTSTATUS ntlmssp_make_packet_signature(NTLMSSP_CLIENT_STATE *ntlmssp_stat
 	return NT_STATUS_OK;
 }
 
-NTSTATUS ntlmssp_client_sign_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
-					   const uchar *data, size_t length, 
-					   DATA_BLOB *sig) 
+NTSTATUS ntlmssp_sign_packet(NTLMSSP_STATE *ntlmssp_state,
+				    const uchar *data, size_t length, 
+				    DATA_BLOB *sig) 
 {
 	NTSTATUS nt_status = ntlmssp_make_packet_signature(ntlmssp_state, data, length, NTLMSSP_SEND, sig);
 
@@ -161,9 +161,9 @@ NTSTATUS ntlmssp_client_sign_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
  *
  */
 
-NTSTATUS ntlmssp_client_check_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
-				     const uchar *data, size_t length, 
-				     const DATA_BLOB *sig) 
+NTSTATUS ntlmssp_check_packet(NTLMSSP_STATE *ntlmssp_state,
+			      const uchar *data, size_t length, 
+			      const DATA_BLOB *sig) 
 {
 	DATA_BLOB local_sig;
 	NTSTATUS nt_status;
@@ -204,11 +204,11 @@ NTSTATUS ntlmssp_client_check_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
  *
  */
 
-NTSTATUS ntlmssp_client_seal_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
-				    uchar *data, size_t length,
-				    DATA_BLOB *sig)
+NTSTATUS ntlmssp_seal_packet(NTLMSSP_STATE *ntlmssp_state,
+			     uchar *data, size_t length,
+			     DATA_BLOB *sig)
 {	
-	DEBUG(10,("ntlmssp_client_seal_data: seal\n"));
+	DEBUG(10,("ntlmssp_seal_data: seal\n"));
 	dump_data_pw("ntlmssp clear data\n", data, length);
 	if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_NTLM2) {
 		HMACMD5Context ctx;
@@ -216,7 +216,7 @@ NTSTATUS ntlmssp_client_seal_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
 		uchar digest[16];
 		SIVAL(seq_num, 0, ntlmssp_state->ntlmssp_seq_num);
 
-		hmac_md5_init_limK_to_64((const unsigned char *)(ntlmssp_state->cli_sign_const), 16, &ctx);
+		hmac_md5_init_limK_to_64((const unsigned char *)(ntlmssp_state->send_sign_const), 16, &ctx);
 		hmac_md5_update((const unsigned char *)seq_num, 4, &ctx);
 		hmac_md5_update(data, length, &ctx);
 		hmac_md5_final(digest, &ctx);
@@ -227,13 +227,13 @@ NTSTATUS ntlmssp_client_seal_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
 		}
 
 		dump_data_pw("ntlmssp client sealing hash:\n", 
-			     ntlmssp_state->cli_seal_hash,
-			     sizeof(ntlmssp_state->cli_seal_hash));
-		NTLMSSPcalc_ap(ntlmssp_state->cli_seal_hash, data, length);
+			     ntlmssp_state->send_seal_hash,
+			     sizeof(ntlmssp_state->send_seal_hash));
+		NTLMSSPcalc_ap(ntlmssp_state->send_seal_hash, data, length);
 		dump_data_pw("ntlmssp client signing hash:\n", 
-			     ntlmssp_state->cli_sign_hash,
-			     sizeof(ntlmssp_state->cli_sign_hash));
-		NTLMSSPcalc_ap(ntlmssp_state->cli_sign_hash,  sig->data+4, sig->length-4);
+			     ntlmssp_state->send_sign_hash,
+			     sizeof(ntlmssp_state->send_sign_hash));
+		NTLMSSPcalc_ap(ntlmssp_state->send_sign_hash,  sig->data+4, sig->length-4);
 	} else {
 		uint32 crc;
 		crc = crc32_calc_buffer((const char *)data, length);
@@ -266,14 +266,14 @@ NTSTATUS ntlmssp_client_seal_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
  *
  */
 
-NTSTATUS ntlmssp_client_unseal_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
+NTSTATUS ntlmssp_unseal_packet(NTLMSSP_STATE *ntlmssp_state,
 				      uchar *data, size_t length,
 				      DATA_BLOB *sig)
 {
-	DEBUG(10,("ntlmssp_client_unseal_data: seal\n"));
+	DEBUG(10,("ntlmssp__unseal_data: seal\n"));
 	dump_data_pw("ntlmssp sealed data\n", data, length);
 	if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_NTLM2) {
-		NTLMSSPcalc_ap(ntlmssp_state->srv_seal_hash, data, length);
+		NTLMSSPcalc_ap(ntlmssp_state->recv_seal_hash, data, length);
 	} else {
 		dump_data_pw("ntlmssp hash:\n", ntlmssp_state->ntlmssp_hash,
 			     sizeof(ntlmssp_state->ntlmssp_hash));
@@ -281,13 +281,13 @@ NTSTATUS ntlmssp_client_unseal_packet(NTLMSSP_CLIENT_STATE *ntlmssp_state,
 	}
 	dump_data_pw("ntlmssp clear data\n", data, length);
 
-	return ntlmssp_client_check_packet(ntlmssp_state, data, length, sig);
+	return ntlmssp_check_packet(ntlmssp_state, data, length, sig);
 }
 
 /**
    Initialise the state for NTLMSSP signing.
 */
-NTSTATUS ntlmssp_client_sign_init(NTLMSSP_CLIENT_STATE *ntlmssp_state)
+NTSTATUS ntlmssp_sign_init(NTLMSSP_STATE *ntlmssp_state)
 {
 	unsigned char p24[24];
 	ZERO_STRUCT(p24);
@@ -297,34 +297,54 @@ NTSTATUS ntlmssp_client_sign_init(NTLMSSP_CLIENT_STATE *ntlmssp_state)
 
 	if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_NTLM2)
 	{
+		const char *send_sign_const;
+		const char *send_seal_const;
+		const char *recv_sign_const;
+		const char *recv_seal_const;
+
+		switch (ntlmssp_state->role) {
+		case NTLMSSP_CLIENT:
+			send_sign_const = CLI_SIGN;
+			send_seal_const = CLI_SEAL;
+			recv_sign_const = SRV_SIGN;
+			recv_seal_const = SRV_SEAL;
+			break;
+		case NTLMSSP_SERVER:
+			send_sign_const = SRV_SIGN;
+			send_seal_const = SRV_SEAL;
+			recv_sign_const = CLI_SIGN;
+			recv_seal_const = CLI_SEAL;
+			break;
+		}
+
+		calc_ntlmv2_hash(ntlmssp_state->send_sign_hash, 
+				 ntlmssp_state->send_sign_const, 
+				 ntlmssp_state->session_key, send_sign_const);
+		dump_data_pw("NTLMSSP send sign hash:\n", 
+			     ntlmssp_state->send_sign_hash, 
+			     sizeof(ntlmssp_state->send_sign_hash));
+
+		calc_ntlmv2_hash(ntlmssp_state->send_seal_hash, 
+				 ntlmssp_state->send_seal_const, 
+				 ntlmssp_state->session_key, send_seal_const);
+		dump_data_pw("NTLMSSP send sesl hash:\n", 
+			     ntlmssp_state->send_seal_hash, 
+			     sizeof(ntlmssp_state->send_seal_hash));
+
+		calc_ntlmv2_hash(ntlmssp_state->recv_sign_hash, 
+				 ntlmssp_state->recv_sign_const, 
+				 ntlmssp_state->session_key, send_sign_const);
+		dump_data_pw("NTLMSSP receive sign hash:\n", 
+			     ntlmssp_state->recv_sign_hash, 
+			     sizeof(ntlmssp_state->recv_sign_hash));
+
+		calc_ntlmv2_hash(ntlmssp_state->recv_seal_hash, 
+				 ntlmssp_state->recv_seal_const, 
+				 ntlmssp_state->session_key, send_seal_const);
+		dump_data_pw("NTLMSSP receive seal hash:\n", 
+			     ntlmssp_state->recv_sign_hash, 
+			     sizeof(ntlmssp_state->recv_sign_hash));
 
-		calc_ntlmv2_hash(ntlmssp_state->cli_sign_hash, 
-				 ntlmssp_state->cli_sign_const, 
-				 ntlmssp_state->session_key, CLI_SIGN);
-		dump_data_pw("NTLMSSP client sign hash:\n", 
-			     ntlmssp_state->cli_sign_hash, 
-			     sizeof(ntlmssp_state->cli_sign_hash));
-
-		calc_ntlmv2_hash(ntlmssp_state->cli_seal_hash, 
-				 ntlmssp_state->cli_seal_const, 
-				 ntlmssp_state->session_key, CLI_SEAL);
-		dump_data_pw("NTLMSSP client sesl hash:\n", 
-			     ntlmssp_state->cli_seal_hash, 
-			     sizeof(ntlmssp_state->cli_seal_hash));
-
-		calc_ntlmv2_hash(ntlmssp_state->srv_sign_hash, 
-				 ntlmssp_state->srv_sign_const, 
-				 ntlmssp_state->session_key, SRV_SIGN);
-		dump_data_pw("NTLMSSP server sign hash:\n", 
-			     ntlmssp_state->srv_sign_hash, 
-			     sizeof(ntlmssp_state->srv_sign_hash));
-
-		calc_ntlmv2_hash(ntlmssp_state->srv_seal_hash, 
-				 ntlmssp_state->srv_seal_const, 
-				 ntlmssp_state->session_key, SRV_SEAL);
-		dump_data_pw("NTLMSSP server seal hash:\n", 
-			     ntlmssp_state->cli_sign_hash, 
-			     sizeof(ntlmssp_state->cli_sign_hash));
 	} 
 	else if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_LM_KEY) {
 		if (!ntlmssp_state->session_key.data || ntlmssp_state->session_key.length < 8) {
diff --git a/source3/libsmb/smb_signing.c b/source3/libsmb/smb_signing.c
index 91509f0fb8..eec991072d 100644
--- a/source3/libsmb/smb_signing.c
+++ b/source3/libsmb/smb_signing.c
@@ -405,11 +405,11 @@ static void simple_free_signing_context(struct smb_sign_info *si)
  SMB signing - Simple implementation - setup the MAC key.
 ************************************************************/
 
-BOOL cli_simple_set_signing(struct cli_state *cli, const uchar user_session_key[16], const DATA_BLOB response)
+BOOL cli_simple_set_signing(struct cli_state *cli, const DATA_BLOB user_session_key, const DATA_BLOB response)
 {
 	struct smb_basic_signing_context *data;
 
-	if (!user_session_key)
+	if (!user_session_key.length)
 		return False;
 
 	if (!cli_set_smb_signing_common(cli)) {
@@ -425,21 +425,23 @@ BOOL cli_simple_set_signing(struct cli_state *cli, const uchar user_session_key[
 
 	cli->sign_info.signing_context = data;
 	
-	data->mac_key = data_blob(NULL, response.length + 16);
+	data->mac_key = data_blob(NULL, response.length + user_session_key.length);
 
-	memcpy(&data->mac_key.data[0], user_session_key, 16);
+	memcpy(&data->mac_key.data[0], user_session_key.data, user_session_key.length);
 
 	DEBUG(10, ("cli_simple_set_signing: user_session_key\n"));
-	dump_data(10, (const char *)user_session_key, 16);
+	dump_data(10, (const char *)user_session_key.data, user_session_key.length);
 
 	if (response.length) {
-		memcpy(&data->mac_key.data[16],response.data, response.length);
+		memcpy(&data->mac_key.data[user_session_key.length],response.data, response.length);
 		DEBUG(10, ("cli_simple_set_signing: response_data\n"));
 		dump_data(10, (const char *)response.data, response.length);
 	} else {
 		DEBUG(10, ("cli_simple_set_signing: NULL response_data\n"));
 	}
 
+	dump_data_pw("MAC ssession key is:\n", data->mac_key.data, data->mac_key.length);
+
 	/* Initialise the sequence number */
 	data->send_seq_num = 0;
 
@@ -928,11 +930,11 @@ data->send_seq_num = %u\n",
  Turn on signing from this packet onwards. 
 ************************************************************/
 
-void srv_set_signing(const uchar user_session_key[16], const DATA_BLOB response)
+void srv_set_signing(const DATA_BLOB user_session_key, const DATA_BLOB response)
 {
 	struct smb_basic_signing_context *data;
 
-	if (!user_session_key)
+	if (!user_session_key.length)
 		return;
 
 	if (!srv_sign_info.negotiated_smb_signing && !srv_sign_info.mandatory_signing) {
@@ -957,11 +959,13 @@ void srv_set_signing(const uchar user_session_key[16], const DATA_BLOB response)
 
 	srv_sign_info.signing_context = data;
 	
-	data->mac_key = data_blob(NULL, response.length + 16);
+	data->mac_key = data_blob(NULL, response.length + user_session_key.length);
 
-	memcpy(&data->mac_key.data[0], user_session_key, 16);
+	memcpy(&data->mac_key.data[0], user_session_key.data, user_session_key.length);
 	if (response.length)
-		memcpy(&data->mac_key.data[16],response.data, response.length);
+		memcpy(&data->mac_key.data[user_session_key.length],response.data, response.length);
+
+	dump_data_pw("MAC ssession key is:\n", data->mac_key.data, data->mac_key.length);
 
 	/* Initialise the sequence number */
 	data->send_seq_num = 0;
diff --git a/source3/libsmb/smbencrypt.c b/source3/libsmb/smbencrypt.c
index ec31bb5dba..2d02a23394 100644
--- a/source3/libsmb/smbencrypt.c
+++ b/source3/libsmb/smbencrypt.c
@@ -331,9 +331,9 @@ DATA_BLOB NTLMv2_generate_names_blob(const char *hostname,
 	DATA_BLOB names_blob = data_blob(NULL, 0);
 	
 	msrpc_gen(&names_blob, "aaa", 
-		  True, NTLMSSP_NAME_TYPE_DOMAIN, domain,
-		  True, NTLMSSP_NAME_TYPE_SERVER, hostname,
-		  True, 0, "");
+		  NTLMSSP_NAME_TYPE_DOMAIN, domain,
+		  NTLMSSP_NAME_TYPE_SERVER, hostname,
+		  0, "");
 	return names_blob;
 }