I can't set a samba user password... I'm getting read-only permission errors. I'm going to try to replace smbpassd file with the original from the freshly decompressed KNOPPIX cloop file. Maybe I altered that file inadvertently while tinkering.
If It doesn't work out for me, should I make a symlink and then move the orginial file to a location in /etc/skel ? That way it would be copied into ramdisk at boot-up, and changes made with the smbpasswd command would take when booted from the cd?

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