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Samba 4: Linux Active Directory Server

Linux does have directory server called OpenLDAP, but it requires good understanding and admin skills. MS-Ad has reputation for ease of use. Samba is a free software re-implementation of SMB/CIFS networking protocol mainly used by Microsoft. One of the goals of Samba version 4 is to implement an Active Directory compatible Domain Controller. Major features for Samba 4 already include:
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A security issue affects the following Ubuntu releases:

=> Ubuntu 6.06 LTS
=> Ubuntu 7.04
=> Ubuntu 7.10
=> Ubuntu 8.04 LTS

This advisory also applies to the corresponding versions of Kubuntu, Edubuntu, and Xubuntu.

Samba developers discovered that nmbd could be made to overrun a buffer during the processing of GETDC logon server requests. When samba is configured as a Primary or Backup Domain Controller,
a remote attacker could send malicious logon requests and possibly cause a denial of service. (CVE-2007-4572)

Alin Rad Pop of Secunia Research discovered that Samba did not properly perform bounds checking when parsing SMB replies. A remote attacker could send crafted SMB packets and execute arbitrary code. (CVE-2008-1105)

How do I fix this issue?

Login as root and type the following two commands:
$ sudo apt-get update
$ sudo apt-get upgrade

An excellent guide; it will give you steps about using Samba server to join to a Windows domain. From the article:

The primary domain controller (PDC) will serve as the password server for the domain. If Samba and winbind services are running, turn them off. I will show you how turn them on after you join to the Windows domain. You should save your files at any point in your "work-in-progress" and restore your originals if you intend to reboot. You should make note of your hard devices listed in your fstab file. Before you start you should ping the server from your intended Linux workstation.

=> Step by Step: Using Samba to join a Windows Domain