I was able to produce the following error using smbpasswd when the directory
/etc/samba did not exist:

[r...@varda]# smbpasswd -a
New SMB password:
Retype new SMB password:
startsmbfilepwent_internal: file /etc/samba/smbpasswd did not exist.
Couldn't create new one. Error was: No such file or directoryUnable to open
passdb database.
startsmbfilepwent_internal: file /etc/samba/smbpasswd did not exist.
Couldn't create new one. Error was: No such file or
directorystartsmbfilepwent_internal: too many race conditions creating file
/etc/samba/smbpasswd
add_smbfilepwd_entry: unable to open file.
Failed to add entry for user root.
Failed to modify password entry for user root
[r...@varda]#

If this looks like the error you got, try the following:

# cd /etc
# mkdir samba
# smbpasswd -a

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