It seems that my issue was due to corrupt samba cache and the admin password was way to complex.
As I wrote before; I’ve done a clean install -> Configured DNS -> Configured DHCP -> Configured OpenDirectory -> Tested DHCP, DNS, OpenDirectory, and Kerberos from a Mac OS X.4 client -> Configured Windows (Samba) as the PDC -> Tested it by binding a Win XP client but I ran into auth and profile issues.
The resolution to the auth issue was to keep password simple (no special characters ie: !@#$%^&*) so I changed it. After doing that I could bind to the domain.
The profile issue was resolved through Workgroup Manager under the Windows preferences.
Everything is resolved 🙂
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