encrypted passwords are enabled by default. Thus, even if the following line is commented out in smb.conf, encrypted passwords are still enabled: ; encrypt passwords = no Expected Behavior: r-c-samba should say Encrypted Passwords Yes on the Security tab if this line is commented out or if it is set to yes. r-c-samba should say Encrypted Passwords No only if the variable is explicitly set to no in smb.conf.
Should be fixed in redhat-config-samba-1.0.12-1. Thanks for the report.