please help with new samba

["Chris R. Martin" <nakor@texas.net>]

I upgraded my samba package to frozen (2.0.6), and now it doesn't work with 
my old smb.conf file. I've been up and down the samba docs and I've tried 
all sorts of options which don't seem to have any effect (which probably 
means I'm missing something basic). I can't even list the shares on the 
server itself:

server:/etc/samba# smbclient -L server
added interface ip=192.168.1.1 bcast=192.168.1.255 nmask=255.255.255.0
Password:
session setup failed: ERRSRV - ERRbadpw (Bad password - name/password pair in a
Tree Connect or Session Setup are invalid.)

From a windoze machine, I'm asked for a password for \\SERVER\IPC$ 
connection, and I can't browse the shares. This used to all work fine with 
the old samba. Basically I want the windoze PCs on the local network to 
have complete password-free access to /public, and still keep home 
directories private. Here's my (old) smb.conf:

; Make sure and restart the server after making changes to this file, ex:
; /etc/rc.d/init.d/smb stop
; /etc/rc.d/init.d/smb start

[global]
; Uncomment this if you want a guest account
   guest account = ftp
   log file = /var/log/samba-log.%m
   lock directory = /var/lock/samba
   share modes = yes
   workgroup = ACMELABS
   security = share
; added EnablePlainTextPassword to Win98 registry
;   encrypt passwords = yes

[homes]
   comment = Home Directories
   browseable = no
   read only = no
   create mode = 0750

[public]
   comment = Temporary file space
   path = /public
   read only = no
   public = yes


please, if there's anything I'm missing, let me know... this has been the 
only "problem" I've seen with potato.. but it's a biggie for me.

thanks,
Chris