ntlm_auth setup guide
To get access to all the features while using NtlmSigningAndSealing, you need an up-to-date version of ntlm_auth. Samba 3.0.26 or later will do. In some distributions, you need to install the "winbind" package to get ntlm_auth.
If you want client mode NTLM for Wine, e.g. reading your email using Outlook over a connection with NTLM encryption, that's all you need.
If you need server mode NTLM, you need to make sure winbind works and ntlm_auth has access to the privileged winbind pipe. Please refer to the appropriate Samba documentation for this.