Just turning on the "Windows File Sharing" option in the sharing preferences is not enough. Users need to change their password before they can access their home directory. So change your password, and then change it back to what you had, and windows sharing should work and you still have your old password.
[Editor's note: I wonder if this has something to do with the encryption of the password? Any smb gurus want to provide some insight? I had no problems with Windows sharing, but then again, I did a clean install.]

