I was able to confirm that reverting the samba package back to 3.0.2a-40 solves my problem of not being able to set file permissions to "read only" from my XP box. I'd tried just about everything and couldn't get it to work. I could copy a "read only" file to the share, I could remove the "read only" bit from the share, however, I could not for the life of me get it to set the "read only". Which was important for source control. Also, there not being a local echo for smbclient is still a problem. B-)