r874: This patch is a pile of work on NTLMSSP:

Samba's NTLMSSP code is now fully talloc based, which should go a long
way to cleaning up the memory leaks in this code.  This also avoids a
lot of extra copies of data, as we now allocate the 'return' blobs on
a caller-supplied context.

I have also been doing a lot of work towards NTLM2 signing and
sealing.  I have this working for sealing, but not for the verifier
(MD5 integrity check on the stream) which is still incorrect.

(I can aim a rpcecho sinkdata from a Win2k3 box to my server, and the
data arrives intact, but the signature check fails.  It does however
match the test values I have...).

The new torture test is cludged in - when we get a unit test suite
back, I'll happliy put it in the 'right' place....

Andrew Bartlett
(This used to be commit 399e2e2b1149b8d1c070aa7f0d5131c0b577d2b9)

6 files changed, 294 insertions, 199 deletions

diff --git a/source4/libcli/auth/ntlmssp.c b/source4/libcli/auth/ntlmssp.c
index 9513d5a138..3773c8e590 100644
--- a/source4/libcli/auth/ntlmssp.c
+++ b/source4/libcli/auth/ntlmssp.c
@@ -24,13 +24,17 @@
 #include "includes.h"
 
 static NTSTATUS ntlmssp_client_initial(struct ntlmssp_state *ntlmssp_state, 
-				       DATA_BLOB reply, DATA_BLOB *next_request);
+				       TALLOC_CTX *out_mem_ctx, 
+				       DATA_BLOB in, DATA_BLOB *out);
 static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
+					 TALLOC_CTX *out_mem_ctx, 
 					 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);
+					 TALLOC_CTX *out_mem_ctx, 
+					 const DATA_BLOB in, DATA_BLOB *out);
 static NTSTATUS ntlmssp_server_auth(struct ntlmssp_state *ntlmssp_state,
-				    const DATA_BLOB request, DATA_BLOB *reply);
+				    TALLOC_CTX *out_mem_ctx, 
+				    const DATA_BLOB in, DATA_BLOB *out);
 
 /**
  * Callbacks for NTLMSSP - for both client and server operating modes
@@ -41,6 +45,7 @@ static const struct ntlmssp_callbacks {
 	enum NTLMSSP_ROLE role;
 	enum NTLM_MESSAGE_TYPE ntlmssp_command;
 	NTSTATUS (*fn)(struct ntlmssp_state *ntlmssp_state, 
+		       TALLOC_CTX *out_mem_ctx, 
 		       DATA_BLOB in, DATA_BLOB *out);
 } ntlmssp_callbacks[] = {
 	{NTLMSSP_CLIENT, NTLMSSP_INITIAL, ntlmssp_client_initial},
@@ -205,12 +210,15 @@ NTSTATUS ntlmssp_store_response(NTLMSSP_STATE *ntlmssp_state,
  * 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. 
+ * @param out_mem_ctx The TALLOC_CTX for *out to be allocated on
+ * @param in The request, as a DATA_BLOB
+ * @param out The reply, as an talloc()ed DATA_BLOB, on *out_mem_ctx
+ * @return Error, MORE_PROCESSING_REQUIRED if a reply is sent, 
+ *                or NT_STATUS_OK if the user is authenticated. 
  */
 
 NTSTATUS ntlmssp_update(NTLMSSP_STATE *ntlmssp_state, 
+			TALLOC_CTX *out_mem_ctx, 
 			const DATA_BLOB in, DATA_BLOB *out) 
 {
 	DATA_BLOB input;
@@ -219,6 +227,16 @@ NTSTATUS ntlmssp_update(NTLMSSP_STATE *ntlmssp_state,
 
 	*out = data_blob(NULL, 0);
 
+	if (ntlmssp_state->expected_state == NTLMSSP_DONE) {
+		return NT_STATUS_INVALID_PARAMETER;
+	}
+
+	if (!out_mem_ctx) {
+		/* if the caller doesn't want to manage/own the memory, 
+		   we can put it on our context */
+		out_mem_ctx = ntlmssp_state->mem_ctx;
+	}
+
 	if (!in.length && ntlmssp_state->stored_response.length) {
 		input = ntlmssp_state->stored_response;
 		
@@ -239,7 +257,8 @@ NTSTATUS ntlmssp_update(NTLMSSP_STATE *ntlmssp_state,
 			break;
 		}
 	} else {
-		if (!msrpc_parse(&input, "Cd",
+		if (!msrpc_parse(ntlmssp_state->mem_ctx, 
+				 &input, "Cd",
 				 "NTLMSSP",
 				 &ntlmssp_command)) {
 			DEBUG(1, ("Failed to parse NTLMSSP packet, could not extract NTLMSSP command\n"));
@@ -255,8 +274,9 @@ NTSTATUS ntlmssp_update(NTLMSSP_STATE *ntlmssp_state,
 
 	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);
+		    && ntlmssp_callbacks[i].ntlmssp_command == ntlmssp_command 
+		    && ntlmssp_callbacks[i].fn) {
+			return ntlmssp_callbacks[i].fn(ntlmssp_state, out_mem_ctx, input, out);
 		}
 	}
 
@@ -279,10 +299,6 @@ void ntlmssp_end(NTLMSSP_STATE **ntlmssp_state)
 	(*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)->encrypted_session_key);
 		talloc_destroy(mem_ctx);
 	}
 
@@ -391,6 +407,7 @@ static void ntlmssp_weaken_keys(struct ntlmssp_state *ntlmssp_state) {
 			ntlmssp_state->session_key.data[6] = 0x38;
 			ntlmssp_state->session_key.data[7] = 0xb0;
 		}
+		ntlmssp_state->session_key.length = 8;
 	}
 }
 
@@ -398,13 +415,15 @@ static void ntlmssp_weaken_keys(struct ntlmssp_state *ntlmssp_state) {
  * Next state function for the Negotiate packet
  * 
  * @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.
+ * @param out_mem_ctx The TALLOC_CTX for *out to be allocated on
+ * @param in The request, as a DATA_BLOB
+ * @param out The reply, as an talloc()ed DATA_BLOB, on *out_mem_ctx
  * @return Errors or MORE_PROCESSING_REQUIRED if a reply is sent. 
  */
 
 static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
-					 const DATA_BLOB request, DATA_BLOB *reply) 
+					 TALLOC_CTX *out_mem_ctx, 
+					 const DATA_BLOB in, DATA_BLOB *out) 
 {
 	DATA_BLOB struct_blob;
 	fstring dnsname, dnsdomname;
@@ -419,21 +438,19 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
 	file_save("ntlmssp_negotiate.dat", request.data, request.length);
 #endif
 
-	if (request.length) {
-		if (!msrpc_parse(&request, "CddAA",
+	if (in.length) {
+		if (!msrpc_parse(ntlmssp_state->mem_ctx, 
+				 &in, "CddAA",
 				 "NTLMSSP",
 				 &ntlmssp_command,
 				 &neg_flags,
 				 &cliname,
 				 &domname)) {
 			DEBUG(1, ("ntlmssp_server_negotiate: failed to parse NTLMSSP:\n"));
-			dump_data(2, (const char *)request.data, request.length);
+			dump_data(2, (const char *)in.data, in.length);
 			return NT_STATUS_INVALID_PARAMETER;
 		}
 		
-		SAFE_FREE(cliname);
-		SAFE_FREE(domname);
-		
 		debug_ntlmssp_flags(neg_flags);
 	}
 	
@@ -481,7 +498,8 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
 			target_name_dns = dnsname;
 		}
 
-		msrpc_gen(&struct_blob, "aaaaa",
+		msrpc_gen(out_mem_ctx, 
+			  &struct_blob, "aaaaa",
 			  NTLMSSP_NAME_TYPE_DOMAIN, target_name,
 			  NTLMSSP_NAME_TYPE_SERVER, ntlmssp_state->get_global_myname(),
 			  NTLMSSP_NAME_TYPE_DOMAIN_DNS, dnsdomname,
@@ -500,7 +518,8 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
 			gen_string = "CdAdbddB";
 		}
 		
-		msrpc_gen(reply, gen_string,
+		msrpc_gen(out_mem_ctx, 
+			  out, gen_string,
 			  "NTLMSSP", 
 			  NTLMSSP_CHALLENGE,
 			  target_name,
@@ -510,8 +529,6 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
 			  struct_blob.data, struct_blob.length);
 	}
 		
-	data_blob_free(&struct_blob);
-
 	ntlmssp_state->expected_state = NTLMSSP_AUTH;
 
 	return NT_STATUS_MORE_PROCESSING_REQUIRED;
@@ -522,7 +539,6 @@ static NTSTATUS ntlmssp_server_negotiate(struct ntlmssp_state *ntlmssp_state,
  * 
  * @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 or NT_STATUS_OK. 
  */
 
@@ -549,6 +565,7 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 		parse_string = "CdBBAAABd";
 	}
 
+	/* zero these out */
 	data_blob_free(&ntlmssp_state->lm_resp);
 	data_blob_free(&ntlmssp_state->nt_resp);
 
@@ -557,7 +574,8 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 	ntlmssp_state->workstation = NULL;
 
 	/* now the NTLMSSP encoded auth hashes */
-	if (!msrpc_parse(&request, parse_string,
+	if (!msrpc_parse(ntlmssp_state->mem_ctx, 
+			 &request, parse_string,
 			 "NTLMSSP", 
 			 &ntlmssp_command, 
 			 &ntlmssp_state->lm_resp,
@@ -569,9 +587,8 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 			 &auth_flags)) {
 		DEBUG(10, ("ntlmssp_server_auth: failed to parse NTLMSSP (nonfatal):\n"));
 		dump_data(10, (const char *)request.data, request.length);
-		SAFE_FREE(domain);
-		SAFE_FREE(user);
-		SAFE_FREE(workstation);
+
+		/* zero this out */
 		data_blob_free(&ntlmssp_state->encrypted_session_key);
 		auth_flags = 0;
 		
@@ -583,7 +600,8 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 		}
 
 		/* now the NTLMSSP encoded auth hashes */
-		if (!msrpc_parse(&request, parse_string,
+		if (!msrpc_parse(ntlmssp_state->mem_ctx, 
+				 &request, parse_string,
 				 "NTLMSSP", 
 				 &ntlmssp_command, 
 				 &ntlmssp_state->lm_resp,
@@ -593,9 +611,6 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 				 &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;
 		}
@@ -605,33 +620,23 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 		ntlmssp_handle_neg_flags(ntlmssp_state, auth_flags, ntlmssp_state->allow_lm_key);
 
 	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_set_domain(ntlmssp_state, domain))) {
-		SAFE_FREE(domain);
-		SAFE_FREE(user);
-		SAFE_FREE(workstation);
+		/* zero this out */
 		data_blob_free(&ntlmssp_state->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);
+		/* zero this out */
 		data_blob_free(&ntlmssp_state->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);
+		/* zero this out */
 		data_blob_free(&ntlmssp_state->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));
 
@@ -648,7 +653,8 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 	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);
+			SMB_ASSERT(ntlmssp_state->internal_chal.data 
+				   && ntlmssp_state->internal_chal.length == 8);
 			
 			ntlmssp_state->doing_ntlm2 = True;
 
@@ -659,13 +665,17 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 			MD5Update(&md5_session_nonce_ctx, ntlmssp_state->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);
+			ntlmssp_state->chal = data_blob_talloc(ntlmssp_state->mem_ctx, 
+							       session_nonce_hash, 8);
 
-			/* LM response is no longer useful */
+			/* LM response is no longer useful, zero it out */
 			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))) {
+			if (!NT_STATUS_IS_OK(nt_status = 
+					     ntlmssp_state->set_challenge(ntlmssp_state, 
+									  &ntlmssp_state->chal))) {
+				/* zero this out */
 				data_blob_free(&ntlmssp_state->encrypted_session_key);
 				return nt_status;
 			}
@@ -678,25 +688,20 @@ static NTSTATUS ntlmssp_server_preauth(struct ntlmssp_state *ntlmssp_state,
 }
 
 /**
- * Next state function for the Authenticate packet
+ * Next state function for the Authenticate packet 
+ * (after authentication - figures out the session keys etc)
  * 
  * @param ntlmssp_state NTLMSSP State
- * @param request The request, as a DATA_BLOB
- * @param reply The reply, as an allocated DATA_BLOB, caller to free.
  * @return Errors or NT_STATUS_OK. 
  */
 
 static NTSTATUS ntlmssp_server_postauth(struct ntlmssp_state *ntlmssp_state,
 					DATA_BLOB *user_session_key, 
-					DATA_BLOB *lm_session_key, 
-					DATA_BLOB *reply) 
+					DATA_BLOB *lm_session_key) 
 {
 	NTSTATUS nt_status;
 	DATA_BLOB session_key = data_blob(NULL, 0);
 
-	/* parse the NTLMSSP packet */
-	*reply = data_blob(NULL, 0);
-
 	if (user_session_key)
 		dump_data_pw("USER session key:\n", user_session_key->data, user_session_key->length);
 
@@ -807,8 +812,15 @@ static NTSTATUS ntlmssp_server_postauth(struct ntlmssp_state *ntlmssp_state,
 
 	data_blob_free(&ntlmssp_state->encrypted_session_key);
 	
-	/* allow arbitarily many authentications */
-	ntlmssp_state->expected_state = NTLMSSP_AUTH;
+	/* allow arbitarily many authentications, but watch that this will cause a 
+	   memory leak, until the ntlmssp_state is shutdown 
+	*/
+
+	if (ntlmssp_state->server_multiple_authentications) {
+		ntlmssp_state->expected_state = NTLMSSP_AUTH;
+	} else {
+		ntlmssp_state->expected_state = NTLMSSP_DONE;
+	}
 
 	return nt_status;
 }
@@ -818,22 +830,23 @@ static NTSTATUS ntlmssp_server_postauth(struct ntlmssp_state *ntlmssp_state,
  * Next state function for the Authenticate packet
  * 
  * @param ntlmssp_state NTLMSSP State
- * @param request The request, as a DATA_BLOB
- * @param reply The reply, as an allocated DATA_BLOB, caller to free.
- * @return Errors or NT_STATUS_OK. 
+ * @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. 
  */
 
 static NTSTATUS ntlmssp_server_auth(struct ntlmssp_state *ntlmssp_state,
-				    const DATA_BLOB request, DATA_BLOB *reply) 
+				    TALLOC_CTX *out_mem_ctx, 
+				    const DATA_BLOB in, DATA_BLOB *out) 
 {
 	DATA_BLOB user_session_key = data_blob(NULL, 0);
 	DATA_BLOB lm_session_key = data_blob(NULL, 0);
 	NTSTATUS nt_status;
 
-	/* parse the NTLMSSP packet */
-	*reply = data_blob(NULL, 0);
+	/* zero the outbound NTLMSSP packet */
+	*out = data_blob_talloc(out_mem_ctx, NULL, 0);
 
-	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_server_preauth(ntlmssp_state, request))) {
+	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_server_preauth(ntlmssp_state, in))) {
 		return nt_status;
 	}
 
@@ -851,7 +864,12 @@ static NTSTATUS ntlmssp_server_auth(struct ntlmssp_state *ntlmssp_state,
 		return nt_status;
 	}
 	
-	return ntlmssp_server_postauth(ntlmssp_state, &user_session_key, &lm_session_key, reply);
+	if (ntlmssp_state->server_use_session_keys) {
+		return ntlmssp_server_postauth(ntlmssp_state, &user_session_key, &lm_session_key);
+	} else {
+		ntlmssp_state->session_key = data_blob(NULL, 0);
+		return NT_STATUS_OK;
+	}
 }
 
 /**
@@ -889,6 +907,9 @@ NTSTATUS ntlmssp_server_start(NTLMSSP_STATE **ntlmssp_state)
 	(*ntlmssp_state)->allow_lm_key = (lp_lanman_auth() 
 					  && lp_parm_bool(-1, "ntlmssp_server", "allow_lm_key", False));
 
+	(*ntlmssp_state)->server_use_session_keys = True;
+	(*ntlmssp_state)->server_multiple_authentications = False;
+	
 	(*ntlmssp_state)->ref_count = 1;
 
 	(*ntlmssp_state)->neg_flags = 
@@ -910,13 +931,15 @@ NTSTATUS ntlmssp_server_start(NTLMSSP_STATE **ntlmssp_state)
  * Next state function for the Initial packet
  * 
  * @param ntlmssp_state NTLMSSP State
- * @param request The request, as a DATA_BLOB.  reply.data must be NULL
- * @param request The reply, as an allocated DATA_BLOB, caller to free.
+ * @param out_mem_ctx The DATA_BLOB *out will be allocated on this context
+ * @param in The request, as a DATA_BLOB.  reply.data must be NULL
+ * @param out The reply, as an talloc()ed DATA_BLOB, on out_mem_ctx
  * @return Errors or NT_STATUS_OK. 
  */
 
 static NTSTATUS ntlmssp_client_initial(struct ntlmssp_state *ntlmssp_state, 
-				  DATA_BLOB reply, DATA_BLOB *next_request) 
+				       TALLOC_CTX *out_mem_ctx, 
+				       DATA_BLOB in, DATA_BLOB *out) 
 {
 	if (ntlmssp_state->unicode) {
 		ntlmssp_state->neg_flags |= NTLMSSP_NEGOTIATE_UNICODE;
@@ -929,7 +952,8 @@ static NTSTATUS ntlmssp_client_initial(struct ntlmssp_state *ntlmssp_state,
 	}
 
 	/* generate the ntlmssp negotiate packet */
-	msrpc_gen(next_request, "CddAA",
+	msrpc_gen(out_mem_ctx, 
+		  out, "CddAA",
 		  "NTLMSSP",
 		  NTLMSSP_NEGOTIATE,
 		  ntlmssp_state->neg_flags,
@@ -951,7 +975,8 @@ static NTSTATUS ntlmssp_client_initial(struct ntlmssp_state *ntlmssp_state,
  */
 
 static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state, 
-					 const DATA_BLOB reply, DATA_BLOB *next_request) 
+					 TALLOC_CTX *out_mem_ctx,
+					 const DATA_BLOB in, DATA_BLOB *out) 
 {
 	uint32 chal_flags, ntlmssp_command, unkn1, unkn2;
 	DATA_BLOB server_domain_blob;
@@ -968,13 +993,14 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state,
 	DATA_BLOB encrypted_session_key = data_blob(NULL, 0);
 	NTSTATUS nt_status;
 
-	if (!msrpc_parse(&reply, "CdBd",
+	if (!msrpc_parse(ntlmssp_state->mem_ctx, 
+			 &in, "CdBd",
 			 "NTLMSSP",
 			 &ntlmssp_command, 
 			 &server_domain_blob,
 			 &chal_flags)) {
 		DEBUG(1, ("Failed to parse the NTLMSSP Challenge: (#1)\n"));
-		dump_data(2, (const char *)reply.data, reply.length);
+		dump_data(2, (const char *)in.data, in.length);
 
 		return NT_STATUS_INVALID_PARAMETER;
 	}
@@ -1006,7 +1032,8 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state,
 	DEBUG(3, ("NTLMSSP: Set final flags:\n"));
 	debug_ntlmssp_flags(ntlmssp_state->neg_flags);
 
-	if (!msrpc_parse(&reply, chal_parse_string,
+	if (!msrpc_parse(ntlmssp_state->mem_ctx, 
+			 &in, chal_parse_string,
 			 "NTLMSSP",
 			 &ntlmssp_command, 
 			 &server_domain,
@@ -1015,16 +1042,13 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state,
 			 &unkn1, &unkn2,
 			 &struct_blob)) {
 		DEBUG(1, ("Failed to parse the NTLMSSP Challenge: (#2)\n"));
-		dump_data(2, (const char *)reply.data, reply.length);
+		dump_data(2, (const char *)in.data, in.length);
 		return NT_STATUS_INVALID_PARAMETER;
 	}
 
-	ntlmssp_state->server_domain = talloc_strdup(ntlmssp_state->mem_ctx,
-						     server_domain);
+	ntlmssp_state->server_domain = server_domain;
 
-	SAFE_FREE(server_domain);
 	if (challenge_blob.length != 8) {
-		data_blob_free(&struct_blob);
 		return NT_STATUS_INVALID_PARAMETER;
 	}
 
@@ -1137,7 +1161,6 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state,
 			/* LM Key is incompatible... */
 			ntlmssp_state->neg_flags &= ~NTLMSSP_NEGOTIATE_LM_KEY;
 		}
-		
 	}
 	
 	if ((ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_LM_KEY) 
@@ -1156,8 +1179,6 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state,
 		dump_data_pw("LM session key\n", session_key.data, session_key.length);
 	}
 
-	data_blob_free(&struct_blob);
-
 
 	/* Key exchange encryptes a new client-generated session key with
 	   the password-derived key */
@@ -1167,18 +1188,19 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state,
 		generate_random_buffer(client_session_key, sizeof(client_session_key), False);
 
 		/* Encrypt the new session key with the old one */
-		encrypted_session_key = data_blob(client_session_key, sizeof(client_session_key));
+		encrypted_session_key = data_blob_talloc(ntlmssp_state->mem_ctx, 
+							 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);
 		dump_data_pw("KEY_EXCH session key (enc):\n", encrypted_session_key.data, encrypted_session_key.length);
 
 		/* Mark the new session key as the 'real' session key */
-		data_blob_free(&session_key);
 		session_key = data_blob_talloc(ntlmssp_state->mem_ctx, client_session_key, sizeof(client_session_key));
 	}
 
 	/* this generates the actual auth packet */
-	if (!msrpc_gen(next_request, auth_gen_string, 
+	if (!msrpc_gen(out_mem_ctx, 
+		       out, auth_gen_string, 
 		       "NTLMSSP", 
 		       NTLMSSP_AUTH, 
 		       lm_response.data, lm_response.length,
@@ -1192,10 +1214,6 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state,
 		return NT_STATUS_NO_MEMORY;
 	}
 
-	data_blob_free(&encrypted_session_key);
-
-	data_blob_free(&ntlmssp_state->chal);
-
 	ntlmssp_state->session_key = session_key;
 
 	/* The client might be using 56 or 40 bit weakened keys */
@@ -1205,10 +1223,11 @@ static NTSTATUS ntlmssp_client_challenge(struct ntlmssp_state *ntlmssp_state,
 	ntlmssp_state->lm_resp = lm_response;
 	ntlmssp_state->nt_resp = nt_response;
 
-	ntlmssp_state->expected_state = NTLMSSP_UNKNOWN;
+	ntlmssp_state->expected_state = NTLMSSP_DONE;
 
 	if (!NT_STATUS_IS_OK(nt_status = ntlmssp_sign_init(ntlmssp_state))) {
-		DEBUG(1, ("Could not setup NTLMSSP signing/sealing system (error was: %s)\n", nt_errstr(nt_status)));
+		DEBUG(1, ("Could not setup NTLMSSP signing/sealing system (error was: %s)\n", 
+			  nt_errstr(nt_status)));
 		return nt_status;
 	}
 
diff --git a/source4/libcli/auth/ntlmssp.h b/source4/libcli/auth/ntlmssp.h
index a5e0951fa8..d3d39e8465 100644
--- a/source4/libcli/auth/ntlmssp.h
+++ b/source4/libcli/auth/ntlmssp.h
@@ -34,7 +34,8 @@ enum NTLM_MESSAGE_TYPE
 	NTLMSSP_NEGOTIATE = 1,
 	NTLMSSP_CHALLENGE = 2,
 	NTLMSSP_AUTH      = 3,
-	NTLMSSP_UNKNOWN   = 4
+	NTLMSSP_UNKNOWN   = 4,
+	NTLMSSP_DONE   = 5 /* samba final state */
 };
 
 /* NTLMSSP negotiation flags */
@@ -80,9 +81,15 @@ typedef struct ntlmssp_state
 
 	BOOL unicode;
 	BOOL use_ntlmv2;
-	BOOL use_nt_response;  /* Set to 'NO' to debug what happens when the NT response is omited */
+	BOOL use_nt_response;  /* Set to 'False' to debug what happens when the NT response is omited */
 	BOOL allow_lm_key;     /* The LM_KEY code is not functional at this point, and it's not 
 				  very secure anyway */
+
+	BOOL server_use_session_keys; /* Set to 'False' for authentication only, 
+					 that will never return a session key */
+	BOOL server_multiple_authentications;  /* Set to 'True' to allow squid 2.5 
+						  style 'challenge caching' */
+
 	char *user;
 	char *domain;
 	char *workstation;
@@ -159,10 +166,10 @@ typedef struct ntlmssp_state
 	uint32 ntlmssp_seq_num;
 
 	/* ntlmv2 */
-	char send_sign_const[16];
-	char send_seal_const[16];
-	char recv_sign_const[16];
-	char recv_seal_const[16];
+	char send_sign_key[16];
+	char send_seal_key[16];
+	char recv_sign_key[16];
+	char recv_seal_key[16];
 
 	unsigned char send_sign_hash[258];
 	unsigned char send_seal_hash[258];
diff --git a/source4/libcli/auth/ntlmssp_parse.c b/source4/libcli/auth/ntlmssp_parse.c
index 4b3043aec8..6ddaeebb06 100644
--- a/source4/libcli/auth/ntlmssp_parse.c
+++ b/source4/libcli/auth/ntlmssp_parse.c
@@ -40,7 +40,7 @@
   d = word (4 bytes)
   C = constant ascii string
  */
-BOOL msrpc_gen(DATA_BLOB *blob,
+BOOL msrpc_gen(TALLOC_CTX *mem_ctx, DATA_BLOB *blob,
 	       const char *format, ...)
 {
 	int i, n;
@@ -91,7 +91,7 @@ BOOL msrpc_gen(DATA_BLOB *blob,
 	va_end(ap);
 
 	/* allocate the space, then scan the format again to fill in the values */
-	*blob = data_blob(NULL, head_size + data_size);
+	*blob = data_blob_talloc(mem_ctx, NULL, head_size + data_size);
 
 	head_ofs = 0;
 	data_ofs = head_size;
@@ -182,12 +182,12 @@ if ((head_ofs + amount) > blob->length) { \
   C = constant ascii string
  */
 
-BOOL msrpc_parse(const DATA_BLOB *blob,
+BOOL msrpc_parse(TALLOC_CTX *mem_ctx, const DATA_BLOB *blob,
 		 const char *format, ...)
 {
 	int i;
 	va_list ap;
-	char **ps, *s;
+	const char **ps, *s;
 	DATA_BLOB *b;
 	size_t head_ofs = 0;
 	uint16 len1, len2;
@@ -206,7 +206,7 @@ BOOL msrpc_parse(const DATA_BLOB *blob,
 
 			ps = va_arg(ap, char **);
 			if (len1 == 0 && len2 == 0) {
-				*ps = smb_xstrdup("");
+				*ps = "";
 			} else {
 				/* make sure its in the right format - be strict */
 				if ((len1 != len2) || (ptr + len1 < ptr) || (ptr + len1 < len1) || (ptr + len1 > blob->length)) {
@@ -223,9 +223,12 @@ BOOL msrpc_parse(const DATA_BLOB *blob,
 					pull_string(NULL, p, blob->data + ptr, sizeof(p), 
 						    len1, 
 						    STR_UNICODE|STR_NOALIGN);
-					(*ps) = smb_xstrdup(p);
+					(*ps) = talloc_strdup(mem_ctx, p);
+					if (!(*ps)) {
+						return False;
+					}
 				} else {
-					(*ps) = smb_xstrdup("");
+					(*ps) = "";
 				}
 			}
 			break;
@@ -238,7 +241,7 @@ BOOL msrpc_parse(const DATA_BLOB *blob,
 			ps = va_arg(ap, char **);
 			/* make sure its in the right format - be strict */
 			if (len1 == 0 && len2 == 0) {
-				*ps = smb_xstrdup("");
+				*ps = "";
 			} else {
 				if ((len1 != len2) || (ptr + len1 < ptr) || (ptr + len1 < len1) || (ptr + len1 > blob->length)) {
 					return False;
@@ -251,9 +254,12 @@ BOOL msrpc_parse(const DATA_BLOB *blob,
 					pull_string(NULL, p, blob->data + ptr, sizeof(p), 
 						    len1, 
 						    STR_ASCII|STR_NOALIGN);
-					(*ps) = smb_xstrdup(p);
+					(*ps) = talloc_strdup(mem_ctx, p);
+					if (!(*ps)) {
+						return False;
+					}
 				} else {
-					(*ps) = smb_xstrdup("");
+					(*ps) = "";
 				}
 			}
 			break;
@@ -265,7 +271,7 @@ BOOL msrpc_parse(const DATA_BLOB *blob,
 
 			b = (DATA_BLOB *)va_arg(ap, void *);
 			if (len1 == 0 && len2 == 0) {
-				*b = data_blob(NULL, 0);
+				*b = data_blob_talloc(mem_ctx, NULL, 0);
 			} else {
 				/* make sure its in the right format - be strict */
 				if ((len1 != len2) || (ptr + len1 < ptr) || (ptr + len1 < len1) || (ptr + len1 > blob->length)) {
@@ -275,7 +281,7 @@ BOOL msrpc_parse(const DATA_BLOB *blob,
 				if (blob->data + ptr < (uint8 *)ptr || blob->data + ptr < blob->data)
 					return False;	
 			
-				*b = data_blob(blob->data + ptr, len1);
+				*b = data_blob_talloc(mem_ctx, blob->data + ptr, len1);
 			}
 			break;
 		case 'b':
@@ -286,7 +292,7 @@ BOOL msrpc_parse(const DATA_BLOB *blob,
 			if (blob->data + head_ofs < (uint8 *)head_ofs || blob->data + head_ofs < blob->data)
 				return False;	
 			
-			*b = data_blob(blob->data + head_ofs, len1);
+			*b = data_blob_talloc(mem_ctx, blob->data + head_ofs, len1);
 			head_ofs += len1;
 			break;
 		case 'd':
diff --git a/source4/libcli/auth/ntlmssp_sign.c b/source4/libcli/auth/ntlmssp_sign.c
index 5039a842bc..6abec7e8b6 100644
--- a/source4/libcli/auth/ntlmssp_sign.c
+++ b/source4/libcli/auth/ntlmssp_sign.c
@@ -53,7 +53,7 @@ static void NTLMSSPcalc_ap( unsigned char *hash, unsigned char *data, int len)
     hash[257] = index_j;
 }
 
-static void calc_hash(unsigned char hash[258], const char *k2, int k2l)
+static void calc_hash(unsigned char hash[258], const char *key, size_t key_len)
 {
 	unsigned char j = 0;
 	int ind;
@@ -67,7 +67,7 @@ static void calc_hash(unsigned char hash[258], const char *k2, int k2l)
 	{
 		unsigned char tc;
 
-		j += (hash[ind] + k2[ind%k2l]);
+		j += (hash[ind] + key[ind%key_len]);
 
 		tc = hash[ind];
 		hash[ind] = hash[j];
@@ -78,23 +78,37 @@ static void calc_hash(unsigned char hash[258], const char *k2, int k2l)
 	hash[257] = 0;
 }
 
-static void calc_ntlmv2_hash(unsigned char hash[258], unsigned char digest[16],
+/**
+ * Some notes on then NTLM2 code:
+ *
+ * This code works correctly for the sealing part of the problem.  If
+ * we disable the check for valid client signatures, then we see that
+ * the output of a rpcecho 'sinkdata' at smbd is correct.  We get the
+ * valid data, and it is validly decrypted.
+ * 
+ * This means that the quantity of data passing though the RC4 sealing
+ * pad is correct.  
+ *
+ * This code also correctly matches test values that I have obtained,
+ * claiming to be the correct output of NTLM2 signature generation.
+ *
+ */
+
+
+
+
+static void calc_ntlmv2_hash(unsigned char hash[258], unsigned char subkey[16],
 			     DATA_BLOB session_key, 
 			     const char *constant)
 {
 	struct MD5Context ctx3;
 
-	/* NOTE:  This code is currently complate fantasy - it's
-	   got more in common with reality than the previous code
-	   (the LM session key is not the right thing to use) but
-	   it still needs work */
-
 	MD5Init(&ctx3);
 	MD5Update(&ctx3, session_key.data, session_key.length);
-	MD5Update(&ctx3, (const unsigned char *)constant, strlen(constant)+1);
-	MD5Final(digest, &ctx3);
+	MD5Update(&ctx3, constant, strlen(constant)+1);
+	MD5Final(subkey, &ctx3);
 
-	calc_hash(hash, digest, 16);
+	calc_hash(hash, subkey, 16);
 }
 
 enum ntlmssp_direction {
@@ -103,40 +117,51 @@ enum ntlmssp_direction {
 };
 
 static NTSTATUS ntlmssp_make_packet_signature(NTLMSSP_STATE *ntlmssp_state,
+					      TALLOC_CTX *sig_mem_ctx, 
 					      const uchar *data, size_t length, 
 					      enum ntlmssp_direction direction,
 					      DATA_BLOB *sig) 
 {
 	if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_NTLM2) {
+
 		HMACMD5Context ctx;
 		uchar seq_num[4];
 		uchar digest[16];
 		SIVAL(seq_num, 0, ntlmssp_state->ntlmssp_seq_num);
 
-		hmac_md5_init_limK_to_64((const unsigned char *)(ntlmssp_state->send_sign_const), 16, &ctx);
+		switch (direction) {
+		case NTLMSSP_SEND:
+			hmac_md5_init_limK_to_64(ntlmssp_state->send_sign_key, 
+						 sizeof(ntlmssp_state->send_sign_key), &ctx);
+			break;
+		case NTLMSSP_RECEIVE:
+			hmac_md5_init_limK_to_64(ntlmssp_state->recv_sign_key, 
+						 sizeof(ntlmssp_state->recv_sign_key), &ctx);
+			break;
+		}
 		hmac_md5_update(seq_num, 4, &ctx);
 		hmac_md5_update(data, length, &ctx);
 		hmac_md5_final(digest, &ctx);
 
-		if (!msrpc_gen(sig, "dBd", NTLMSSP_SIGN_VERSION, digest, 8 /* only copy first 8 bytes */
-			       , ntlmssp_state->ntlmssp_seq_num)) {
-			return NT_STATUS_NO_MEMORY;
-		}
-
 		if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_KEY_EXCH) {
 			switch (direction) {
 			case NTLMSSP_SEND:
-				NTLMSSPcalc_ap(ntlmssp_state->send_sign_hash,  sig->data+4, sig->length-4);
+				NTLMSSPcalc_ap(ntlmssp_state->send_seal_hash, digest, 8);
 				break;
 			case NTLMSSP_RECEIVE:
-				NTLMSSPcalc_ap(ntlmssp_state->recv_sign_hash,  sig->data+4, sig->length-4);
+				NTLMSSPcalc_ap(ntlmssp_state->recv_seal_hash, digest, 8);
 				break;
 			}
 		}
+		*sig = data_blob_talloc(sig_mem_ctx, NULL, 16);
+		SIVAL(sig->data, 0, NTLMSSP_SIGN_VERSION);
+		memcpy(sig->data + 4, digest, 8);
+		memcpy(sig->data + 12, seq_num, 4);
+
 	} else {
 		uint32 crc;
 		crc = crc32_calc_buffer((const char *)data, length);
-		if (!msrpc_gen(sig, "dddd", NTLMSSP_SIGN_VERSION, 0, crc, ntlmssp_state->ntlmssp_seq_num)) {
+		if (!msrpc_gen(sig_mem_ctx, sig, "dddd", NTLMSSP_SIGN_VERSION, 0, crc, ntlmssp_state->ntlmssp_seq_num)) {
 			return NT_STATUS_NO_MEMORY;
 		}
 		
@@ -148,16 +173,19 @@ static NTSTATUS ntlmssp_make_packet_signature(NTLMSSP_STATE *ntlmssp_state,
 }
 
 NTSTATUS ntlmssp_sign_packet(NTLMSSP_STATE *ntlmssp_state,
-				    const uchar *data, size_t length, 
-				    DATA_BLOB *sig) 
+			     TALLOC_CTX *sig_mem_ctx, 
+			     const uchar *data, size_t length, 
+			     DATA_BLOB *sig) 
 {
 	NTSTATUS nt_status;
+
 	if (!ntlmssp_state->session_key.length) {
 		DEBUG(3, ("NO session key, cannot check sign packet\n"));
 		return NT_STATUS_NO_USER_SESSION_KEY;
 	}
 
-	nt_status = ntlmssp_make_packet_signature(ntlmssp_state, data, length, NTLMSSP_SEND, sig);
+	nt_status = ntlmssp_make_packet_signature(ntlmssp_state, sig_mem_ctx, 
+						  data, length, NTLMSSP_SEND, sig);
 
 	/* increment counter on send */
 	ntlmssp_state->ntlmssp_seq_num++;
@@ -166,11 +194,11 @@ NTSTATUS ntlmssp_sign_packet(NTLMSSP_STATE *ntlmssp_state,
 
 /**
  * Check the signature of an incoming packet 
- * @note caller *must* check that the signature is the size it expects 
  *
  */
 
 NTSTATUS ntlmssp_check_packet(NTLMSSP_STATE *ntlmssp_state,
+			      TALLOC_CTX *sig_mem_ctx, 
 			      const uchar *data, size_t length, 
 			      const DATA_BLOB *sig) 
 {
@@ -187,7 +215,7 @@ NTSTATUS ntlmssp_check_packet(NTLMSSP_STATE *ntlmssp_state,
 			  (unsigned long)sig->length));
 	}
 
-	nt_status = ntlmssp_make_packet_signature(ntlmssp_state, data, 
+	nt_status = ntlmssp_make_packet_signature(ntlmssp_state, sig_mem_ctx, data, 
 						  length, NTLMSSP_RECEIVE, &local_sig);
 	
 	if (!NT_STATUS_IS_OK(nt_status)) {
@@ -195,22 +223,37 @@ NTSTATUS ntlmssp_check_packet(NTLMSSP_STATE *ntlmssp_state,
 		return nt_status;
 	}
 
-	if (local_sig.length != sig->length ||
-	    memcmp(local_sig.data + local_sig.length - 8, 
-		   sig->data + sig->length - 8, 8) != 0) {
-		DEBUG(5, ("BAD SIG: wanted signature of\n"));
-		dump_data(5, (const char *)local_sig.data, local_sig.length);
-		
-		DEBUG(5, ("BAD SIG: got signature of\n"));
-		dump_data(5, (const char *)(sig->data), sig->length);
+	/* increment counter on recv */
+	ntlmssp_state->ntlmssp_seq_num++;
 
-		DEBUG(0, ("NTLMSSP packet check failed due to invalid signature!\n"));
-		return NT_STATUS_ACCESS_DENIED;
+	if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_NTLM2) {
+		if (local_sig.length != sig->length ||
+		    memcmp(local_sig.data, 
+			   sig->data, sig->length) != 0) {
+			DEBUG(5, ("BAD SIG NTLM2: wanted signature of\n"));
+			dump_data(5, local_sig.data, local_sig.length);
+			
+			DEBUG(5, ("BAD SIG: got signature of\n"));
+			dump_data(5, sig->data, sig->length);
+			
+			DEBUG(0, ("NTLMSSP NTLM2 packet check failed due to invalid signature!\n"));
+			return NT_STATUS_ACCESS_DENIED;
+		}
+	} else {
+		if (local_sig.length != sig->length ||
+		    memcmp(local_sig.data + 8, 
+			   sig->data + 8, sig->length - 8) != 0) {
+			DEBUG(5, ("BAD SIG NTLM1: wanted signature of\n"));
+			dump_data(5, (const char *)local_sig.data, local_sig.length);
+			
+			DEBUG(5, ("BAD SIG: got signature of\n"));
+			dump_data(5, (const char *)(sig->data), sig->length);
+			
+			DEBUG(0, ("NTLMSSP NTLM1 packet check failed due to invalid signature!\n"));
+			return NT_STATUS_ACCESS_DENIED;
+		}
 	}
 
-	/* increment counter on recieive */
-	ntlmssp_state->ntlmssp_seq_num++;
-
 	return NT_STATUS_OK;
 }
 
@@ -221,6 +264,7 @@ NTSTATUS ntlmssp_check_packet(NTLMSSP_STATE *ntlmssp_state,
  */
 
 NTSTATUS ntlmssp_seal_packet(NTLMSSP_STATE *ntlmssp_state,
+			     TALLOC_CTX *sig_mem_ctx, 
 			     uchar *data, size_t length,
 			     DATA_BLOB *sig)
 {	
@@ -233,32 +277,34 @@ NTSTATUS ntlmssp_seal_packet(NTLMSSP_STATE *ntlmssp_state,
 	dump_data_pw("ntlmssp clear data\n", data, length);
 	if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_NTLM2) {
 		HMACMD5Context ctx;
-		char seq_num[4];
+		uchar seq_num[4];
 		uchar digest[16];
 		SIVAL(seq_num, 0, ntlmssp_state->ntlmssp_seq_num);
 
-		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_init_limK_to_64(ntlmssp_state->send_sign_key, 
+					 sizeof(ntlmssp_state->send_sign_key), &ctx);
+		hmac_md5_update(seq_num, 4, &ctx);
 		hmac_md5_update(data, length, &ctx);
 		hmac_md5_final(digest, &ctx);
 
-		if (!msrpc_gen(sig, "dBd", NTLMSSP_SIGN_VERSION, digest, 8 /* only copy first 8 bytes */
-			       , ntlmssp_state->ntlmssp_seq_num)) {
-			return NT_STATUS_NO_MEMORY;
+		/* The order of these two operations matters - we must first seal the packet,
+		   then seal the sequence number - this is becouse the send_seal_hash is not
+		   constant, but is is rather updated with each iteration */
+		
+		NTLMSSPcalc_ap(ntlmssp_state->send_seal_hash, data, length);
+
+		if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_KEY_EXCH) {
+			NTLMSSPcalc_ap(ntlmssp_state->send_seal_hash,  digest, 8);
 		}
 
-		dump_data_pw("ntlmssp client sealing hash:\n", 
-			     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->send_sign_hash,
-			     sizeof(ntlmssp_state->send_sign_hash));
-		NTLMSSPcalc_ap(ntlmssp_state->send_sign_hash,  sig->data+4, sig->length-4);
+		*sig = data_blob_talloc(sig_mem_ctx, NULL, 16);
+		SIVAL(sig->data, 0, NTLMSSP_SIGN_VERSION);
+		memcpy(sig->data + 4, digest, 8);
+		memcpy(sig->data + 12, seq_num, 4);
 	} else {
 		uint32 crc;
 		crc = crc32_calc_buffer((const char *)data, length);
-		if (!msrpc_gen(sig, "dddd", NTLMSSP_SIGN_VERSION, 0, crc, ntlmssp_state->ntlmssp_seq_num)) {
+		if (!msrpc_gen(sig_mem_ctx, sig, "dddd", NTLMSSP_SIGN_VERSION, 0, crc, ntlmssp_state->ntlmssp_seq_num)) {
 			return NT_STATUS_NO_MEMORY;
 		}
 
@@ -288,8 +334,9 @@ NTSTATUS ntlmssp_seal_packet(NTLMSSP_STATE *ntlmssp_state,
  */
 
 NTSTATUS ntlmssp_unseal_packet(NTLMSSP_STATE *ntlmssp_state,
-				      uchar *data, size_t length,
-				      DATA_BLOB *sig)
+			       TALLOC_CTX *sig_mem_ctx, 
+			       uchar *data, size_t length,
+			       DATA_BLOB *sig)
 {
 	if (!ntlmssp_state->session_key.length) {
 		DEBUG(3, ("NO session key, cannot unseal packet\n"));
@@ -307,7 +354,10 @@ NTSTATUS ntlmssp_unseal_packet(NTLMSSP_STATE *ntlmssp_state,
 	}
 	dump_data_pw("ntlmssp clear data\n", data, length);
 
-	return ntlmssp_check_packet(ntlmssp_state, data, length, sig);
+	return ntlmssp_check_packet(ntlmssp_state, sig_mem_ctx, data, length, sig);
+
+	/* increment counter on recv */
+	ntlmssp_state->ntlmssp_seq_num++;
 }
 
 /**
@@ -348,57 +398,60 @@ NTSTATUS ntlmssp_sign_init(NTLMSSP_STATE *ntlmssp_state)
 			break;
 		}
 
+		/* SEND */
 		calc_ntlmv2_hash(ntlmssp_state->send_sign_hash, 
-				 ntlmssp_state->send_sign_const, 
+				 ntlmssp_state->send_sign_key, 
 				 ntlmssp_state->session_key, send_sign_const);
+		dump_data_pw("NTLMSSP send sign key:\n",
+			     ntlmssp_state->send_sign_key, 
+			     sizeof(ntlmssp_state->send_sign_key));
+		
 		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->send_seal_key, 
 				 ntlmssp_state->session_key, send_seal_const);
+		dump_data_pw("NTLMSSP send seal key:\n",
+			     ntlmssp_state->send_seal_key, 
+			     sizeof(ntlmssp_state->send_seal_key));
+		
 		dump_data_pw("NTLMSSP send sesl hash:\n", 
 			     ntlmssp_state->send_seal_hash, 
 			     sizeof(ntlmssp_state->send_seal_hash));
 
+		/* RECV */
 		calc_ntlmv2_hash(ntlmssp_state->recv_sign_hash, 
-				 ntlmssp_state->recv_sign_const, 
+				 ntlmssp_state->recv_sign_key, 
 				 ntlmssp_state->session_key, recv_sign_const);
+		dump_data_pw("NTLMSSP recv sign key:\n",
+			     ntlmssp_state->recv_sign_key, 
+			     sizeof(ntlmssp_state->recv_sign_key));
 		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->recv_seal_key, 
 				 ntlmssp_state->session_key, recv_seal_const);
+		dump_data_pw("NTLMSSP recv seal key:\n",
+			     ntlmssp_state->recv_sign_key, 
+			     sizeof(ntlmssp_state->recv_seal_key));
 		dump_data_pw("NTLMSSP receive seal hash:\n", 
 			     ntlmssp_state->recv_sign_hash, 
 			     sizeof(ntlmssp_state->recv_sign_hash));
 
-	} 
-	else if (ntlmssp_state->neg_flags & NTLMSSP_NEGOTIATE_LM_KEY) {
-		if (!ntlmssp_state->session_key.data || ntlmssp_state->session_key.length < 8) {
-			/* can't sign or check signatures yet */ 
-			DEBUG(5, ("NTLMSSP Sign/Seal - cannot use LM KEY yet\n"));	
-			return NT_STATUS_UNSUCCESSFUL;
-		}
-		
-		DEBUG(5, ("NTLMSSP Sign/Seal - using LM KEY\n"));
-
-		calc_hash(ntlmssp_state->ntlmssp_hash, (const char *)(ntlmssp_state->session_key.data), 8);
-		dump_data_pw("NTLMSSP hash:\n", ntlmssp_state->ntlmssp_hash,
-			     sizeof(ntlmssp_state->ntlmssp_hash));
 	} else {
-		if (!ntlmssp_state->session_key.data || ntlmssp_state->session_key.length < 16) {
+		if (!ntlmssp_state->session_key.data) {
 			/* can't sign or check signatures yet */ 
-			DEBUG(5, ("NTLMSSP Sign/Seal - cannot use NT KEY yet\n"));
+			DEBUG(5, ("NTLMSSP Sign/Seal - cannot use NT KEY\n"));
 			return NT_STATUS_UNSUCCESSFUL;
 		}
 		
 		DEBUG(5, ("NTLMSSP Sign/Seal - using NT KEY\n"));
 
-		calc_hash(ntlmssp_state->ntlmssp_hash, (const char *)(ntlmssp_state->session_key.data), 16);
+		calc_hash(ntlmssp_state->ntlmssp_hash, (const char *)(ntlmssp_state->session_key.data), ntlmssp_state->session_key.length);
 		dump_data_pw("NTLMSSP hash:\n", ntlmssp_state->ntlmssp_hash,
 			     sizeof(ntlmssp_state->ntlmssp_hash));
 	}
diff --git a/source4/libcli/auth/schannel.c b/source4/libcli/auth/schannel.c
index e5a786ff24..59d0c4aa7d 100644
--- a/source4/libcli/auth/schannel.c
+++ b/source4/libcli/auth/schannel.c
@@ -93,6 +93,7 @@ static void schannel_digest(const uchar sess_key[16],
   unseal a packet
 */
 NTSTATUS schannel_unseal_packet(struct schannel_state *state,
+				TALLOC_CTX *mem_ctx, 
 				uchar *data, size_t length, 
 				DATA_BLOB *sig)
 {
@@ -183,6 +184,7 @@ NTSTATUS schannel_check_packet(struct schannel_state *state,
   seal a packet
 */
 NTSTATUS schannel_seal_packet(struct schannel_state *state, 
+			      TALLOC_CTX *mem_ctx, 
 			      uchar *data, size_t length, 
 			      DATA_BLOB *sig)
 {
@@ -208,7 +210,7 @@ NTSTATUS schannel_seal_packet(struct schannel_state *state,
 	netsec_deal_with_seq_num(state, digest_final, seq_num);
 
 	if (!state->signature.data) {
-		state->signature = data_blob_talloc(state->mem_ctx, NULL, 32);
+		state->signature = data_blob_talloc(mem_ctx, NULL, 32);
 		if (!state->signature.data) {
 			return NT_STATUS_NO_MEMORY;
 		}
@@ -233,6 +235,7 @@ NTSTATUS schannel_seal_packet(struct schannel_state *state,
   sign a packet
 */
 NTSTATUS schannel_sign_packet(struct schannel_state *state, 
+			      TALLOC_CTX *mem_ctx, 
 			      const uchar *data, size_t length, 
 			      DATA_BLOB *sig)
 {
@@ -250,7 +253,7 @@ NTSTATUS schannel_sign_packet(struct schannel_state *state,
 	netsec_deal_with_seq_num(state, digest_final, seq_num);
 
 	if (!state->signature.data) {
-		state->signature = data_blob_talloc(state->mem_ctx, NULL, 32);
+		state->signature = data_blob_talloc(mem_ctx, NULL, 32);
 		if (!state->signature.data) {
 			return NT_STATUS_NO_MEMORY;
 		}
diff --git a/source4/libcli/util/smbencrypt.c b/source4/libcli/util/smbencrypt.c
index 013f00d5fa..edf1526d2e 100644
--- a/source4/libcli/util/smbencrypt.c
+++ b/source4/libcli/util/smbencrypt.c
@@ -291,19 +291,20 @@ void SMBsesskeygen_lm_sess_key(const uchar lm_hash[16],
 #endif
 }
 
-DATA_BLOB NTLMv2_generate_names_blob(const char *hostname, 
+DATA_BLOB NTLMv2_generate_names_blob(TALLOC_CTX *mem_ctx, 
+				     const char *hostname, 
 				     const char *domain)
 {
-	DATA_BLOB names_blob = data_blob(NULL, 0);
+	DATA_BLOB names_blob = data_blob_talloc(mem_ctx, NULL, 0);
 	
-	msrpc_gen(&names_blob, "aaa", 
+	msrpc_gen(mem_ctx, &names_blob, "aaa", 
 		  NTLMSSP_NAME_TYPE_DOMAIN, domain,
 		  NTLMSSP_NAME_TYPE_SERVER, hostname,
 		  0, "");
 	return names_blob;
 }
 
-static DATA_BLOB NTLMv2_generate_client_data(const DATA_BLOB *names_blob) 
+static DATA_BLOB NTLMv2_generate_client_data(TALLOC_CTX *mem_ctx, const DATA_BLOB *names_blob) 
 {
 	uchar client_chal[8];
 	DATA_BLOB response = data_blob(NULL, 0);
@@ -318,7 +319,7 @@ static DATA_BLOB NTLMv2_generate_client_data(const DATA_BLOB *names_blob)
 
 	/* See http://www.ubiqx.org/cifs/SMB.html#SMB.8.5 */
 
-	msrpc_gen(&response, "ddbbdb", 
+	msrpc_gen(mem_ctx, &response, "ddbbdb", 
 		  0x00000101,     /* Header  */
 		  0,              /* 'Reserved'  */
 		  long_date, 8,	  /* Timestamp */
@@ -337,10 +338,16 @@ static DATA_BLOB NTLMv2_generate_response(const uchar ntlm_v2_hash[16],
 	DATA_BLOB ntlmv2_client_data;
 	DATA_BLOB final_response;
 	
+	TALLOC_CTX *mem_ctx = talloc_init("NTLMv2_generate_response internal context");
+
+	if (!mem_ctx) {
+		return data_blob(NULL, 0);
+	}
+	
 	/* NTLMv2 */
 	/* generate some data to pass into the response function - including
 	   the hostname and domain name of the server */
-	ntlmv2_client_data = NTLMv2_generate_client_data(names_blob);
+	ntlmv2_client_data = NTLMv2_generate_client_data(mem_ctx, names_blob);
 
 	/* Given that data, and the challenge from the server, generate a response */
 	SMBOWFencrypt_ntv2(ntlm_v2_hash, server_chal, &ntlmv2_client_data, ntlmv2_response);
@@ -352,7 +359,7 @@ static DATA_BLOB NTLMv2_generate_response(const uchar ntlm_v2_hash[16],
 	memcpy(final_response.data+sizeof(ntlmv2_response), 
 	       ntlmv2_client_data.data, ntlmv2_client_data.length);
 
-	data_blob_free(&ntlmv2_client_data);
+	talloc_destroy(mem_ctx);
 
 	return final_response;
 }