encrypt passwords (G) This boolean controls whether encrypted passwords will be negotiated with the client. Note that Windows NT 4.0 SP3 and above and also Windows 98 will by default expect encrypted passwords unless a registry entry is changed. To use encrypted passwords in Samba see the file ENCRYPTION.txt in the Samba documentation directory docs/ shipped with the source code. In order for encrypted passwords to work correctly smbd 8 must either have access to a local smbpasswd 5 file (see the smbpasswd 8 program for information on how to set up and maintain this file), or set the security = [server|domain|ads] parameter which causes smbd to authenticate against another server. Default: encrypt passwords = yes