I see the same message "'net usershare' returned error 255" on a from-
scratch beta-cd installation that has been updated to current as of this
writing (Sa 12. Apr 0:00 CEST). No special changes have been made to the
stock system in the context of file sharing, the only thing attempted
was to enable public sharing of a folder from Nautilus. Nautilus asked
to install the services, and did so. Then upon trying to activate the
share, the error showed.

I added the "usershare owner only = False" line and issued
"/etc/init.d/samba restart". Within Nautilus (but without further
reboot) the problem persists. /var/log/samba/log.smbd only confirms the
restart done.

-- 
Upgrading to Hardy destroyed my network shares and when I try to recreate them 
I get this long complicated error message
https://bugs.launchpad.net/bugs/214714
You received this bug notification because you are a member of Ubuntu
Server Team, which is subscribed to samba in ubuntu.

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