diff -ur samba-3.0.10/source/pam_smbpass/pam_smb_passwd.c samba-3.0.10-jn/source/pam_smbpass/pam_smb_passwd.c
--- samba-3.0.10/source/pam_smbpass/pam_smb_passwd.c	2004-10-26 07:04:58.000000000 +1000
+++ samba-3.0.10-jn/source/pam_smbpass/pam_smb_passwd.c	2007-07-25 14:09:19.000000000 +1000
@@ -38,6 +38,9 @@
 
 #include "support.h"
 
+static int _smb_add_user(pam_handle_t *pamh, unsigned int ctrl,
+                         const char *name, SAM_ACCOUNT *sampass, BOOL exist);
+
 int smb_update_db( pam_handle_t *pamh, int ctrl, const char *user,  const char *pass_new )
 {
 	int retval;
@@ -143,9 +146,21 @@
     }
 
     if (!pdb_getsampwnam(sampass,user)) {
-        _log_err( LOG_ALERT, "Failed to find entry for user %s.", user );
-        CatchSignal(SIGPIPE, SIGNAL_CAST oldsig_handler);
-        return PAM_USER_UNKNOWN;
+        /* should we migrate it? */
+        if(on(SMB_MIGRATE, ctrl)) {
+            _log_err( LOG_DEBUG, "Attempting migration for user %s", user );
+            retval = _smb_add_user(pamh, ctrl, user, sampass, 0);
+            if (!pdb_getsampwnam(sampass,user)) {
+                _log_err( LOG_ALERT, "Failed to find entry for user %s even after migration.", user );
+                CatchSignal(SIGPIPE, SIGNAL_CAST oldsig_handler);
+                return PAM_USER_UNKNOWN;
+            }
+        }
+        else {
+            _log_err( LOG_ALERT, "Failed to find entry for user %s.", user );
+            CatchSignal(SIGPIPE, SIGNAL_CAST oldsig_handler);
+            return PAM_USER_UNKNOWN;
+        }
     }
 
     if (flags & PAM_PRELIM_CHECK) {
@@ -334,6 +349,39 @@
     return retval;
 }
 
+/* Helper function for adding a user to the db. */
+static int _smb_add_user(pam_handle_t *pamh, unsigned int ctrl,
+                         const char *name, SAM_ACCOUNT *sampass, BOOL exist)
+{
+    pstring err_str;
+    pstring msg_str;
+    const char *pass = NULL;
+    int retval;
+
+    err_str[0] = '\0';
+    msg_str[0] = '\0';
+
+    /* Add the user to the db if they aren't already there. */
+        retval = local_password_change( name, LOCAL_ADD_USER|LOCAL_SET_NO_PASSWORD,
+                                         pass, err_str,
+                                         sizeof(err_str),
+                                         msg_str, sizeof(msg_str) );
+        if (!retval && *err_str)
+        {
+            err_str[PSTRING_LEN-1] = '\0';
+            make_remark( pamh, ctrl, PAM_ERROR_MSG, err_str );
+        }
+        else if (*msg_str)
+        {
+            msg_str[PSTRING_LEN-1] = '\0';
+            make_remark( pamh, ctrl, PAM_TEXT_INFO, msg_str );
+        }
+        pass = NULL;
+
+        return PAM_IGNORE;
+}
+
+
 /* static module data */
 #ifdef PAM_STATIC
 struct pam_module _pam_smbpass_passwd_modstruct = {