Check the /etc/pam.conf has the smb line:

   other    password required    pam_smb_passwd.so.1    nowarn

If not, add that to the end of the file.  If you, check /var/smb/smbpasswd you should also see a line for your account with a hashed password listed.  In my case, I had my username and an ID listed, but not hashed password.  I didn’t have the line in pam.conf.  After I added it, I had to run the passwd username command on my account, which generated the smb password and inserted it into the smbpasswd file. Then the error about password not being correct went away and I could get in from Windows.  (Windows 7 too! With the “NTLMv2 if negotiated” option in policy.)

I am testing Windows 7 Pro on my laptop and wanted to decide if I can get by with that instead of Ultimate.  Well, my time is running out and I need a couple day to backup everything before I change it.  So…  I need to “rearm” the activation system.

Go to the start menu, and in search box type “cmd” and hit CTL-SHIFT-ENTER to open the command prompt with elevated rights.  Type this:

   1: slmgr -rearm

You’ll get a popup telling you it was successful and you need to restart a few seconds later.