after googling for a few hours since yesterday, i found a workaround to get a connection to my Terastation drive, and MAP Win7 Home Premium drives to my various shared volumes on my NAS.
a couple of 'solutions' that did not help included editing regedit creating a new key HKEY_LOCAL_MACHINES\System\CurrentControlSet\Contr ol\Lsa\ LmCompatibilityLevel with value 1 (also tried 2) each time rebooting. Did not help, i kept getting the login prompt which just would deny me access, even as root/admin of either win7 pc or NAS server admin account. Problem is with Microsoft's secpol or LMCompatibilityLevel key.
Next i tried simply \\192.168.xx.xx\share-name\ from the run command - still same authentication denial.
I found a document on another forum http://www.copyrunstart.net/unable-to-browse-to-buffalo-linkstation-in-windows-7/ which at first seemed a bit silly, but i decided to go and try it out.
Basically, on my Terastation, logged in via http and admin, I removed my newly created users (admin and guest are hard coded), then i tried to map my drives in win7 and had no problems at all, I was able to without having to supply credentials anymore (I also selected 'reconnect at logon')
I then recreated my users on my Terastation, and checked I still had my win7 drive mappings, still OK. I rebooted my win7 a few times, still OK.
I then applied the shares/access restrictions to my 're-created'users I had previously, when I was experiencing the win7 drive mapping, and the drive mappings in win7 suddenly told me "access denied"....
I then created a new volume (share) on my Nas, and as long as there isnt any "access restrictions" set for the shares - you can map those drives too in win7. Problems start as soon as you set user access restrictions on the Nas shares, you can no longer access those drives via win7.
so you have to decide, if using win7:
a)if you want local access, using win7, on same subnet as your NAS - you cannot have shared volumes with access restriction set to users, you can have NAS specified users but these users will only access shared volumes that have NO access restriction
b)if you want protected webaccess to shared volumes set to specific users, these users wont be able to access their protected data whilst connected locally via a win7 pc
c)you can only access those restricted volumes locally by means of http i.e using a browser to locally access your data
I dont know that there is any other solution, i certainly have not found any other way than the above workaround.
this is a well known issue with Windows 7 Home Premium and Samba drives
see also http://social.technet.microsoft.com/Forums/en/w7itpronetworking/thread/ae1c6daf-d1d9-414f-84dc-f2761d9d9db5