Password failure when Windows 7 attempts to connect an OES2 CIFS share

Source: http://helpdesk.wisc.edu/page.php?id=13388

This is related to the NTLM version. Pre-Windows XP SP2 Microsoft operating systems used NTLM version 1. However, Windows XP SP2, Vista and Windows 7 clients default to using NTLM version 2. Both Netware 6.5 CIFS and OES Netware server are unable to communicate over the NTLM version 2 protocol.

Vista Business and Ultimate

On the start menu in the search field type "gpedit.msc", hit enter. This will open the group policy editor.
Go to "Computer Configruation" -->"Windows Settings" -->"Security Settings" -->"Local Policies" -->"Security Options"
In the pane on the right side of the screen, select "Network Security: LAN Manager Authentication level." By default this read "Send NTLMv2 response only."
Change "Send NTLMv2 respone only" to "Send LM & NTLM -- use NTLMv2 session security if negotiated"

Vista Home Premium
Vista Home Premium and Home Basic have different networking capabilities. Because "gpedit.msc" is missing, registry editing will be required to fix the problem.

Open "regedit"
Go to "HKEY_LOCAL_MACHINE" -->"SYSTEM" -->"CurrentControlSet" -->"Control" -->"Lsa"
In the pane on the right change "LmCompatibiltyLevel" to "1"

How to make a distributable "reg" file
In a text editor, enter the following:
Windows Registry Editor Version 5.00
[HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa]
"LmCompatibilityLevel"=dword:00000001
Save the file with a ".reg" extension. This file can be distributed to any Vista client that is having problems connecting to Netware.