This is a problem I encountered when I upgraded Mac OS X from the version 10.5 (Leopard) to 10.6 (Snow Leopard). One of my friend also got a similar problem when she upgraded to the version 10.7 (Lion).
This issue was affecting the access to the network shares set up with Samba (version 3.0.24) on my D-Link DNS-323. For some reason, I wasn’t able to authenticate on the shares as soon as I upgraded to Snow Leopard!

Here is the error message I was getting:

After browsing a few forums on the web, I finally found a solution. 🙂
I simply had to change the security mode in the Samba configuration file (smb.conf) to read:

security = USER

Note that this property can be found under the [global] section.

For more information about the Samba security mode, please read the following article by Jack Wallen:
Understanding Samba security modes