While accessing the samba shares using "net view", it fails with "System error 1326 has occurred"

Issue

• Unable to browse samba shares from Windows clients (i.e: WinXP, Windows 7). net view fails with System error 1326 has occurred error, However net use x: \\server\share works properly.

i.e:

C:\> net use X: \\server\share
(maps the drive successfully) and
C:\> net view \\server
(lists the various services).

But doing this:

C:\> net view
gives an error message:
System error 1326 has occurred.
Logon failure: unknown user name or bad password.

And clicking on "Computers Near Me" or Network Neighborhood gives a dialog box:

Workgroup is not accessible.
The network name cannot be found.