You probably have a password conflict. (And a password can be blank and still have a conflict.) IPC stands for Inter-Process Communication and is how Windows systems communicate with one another. The most likely cause of this problem is that the ID you are using on the local system also exists on the system you are trying to contact, but the Passwords are different from one system to the other.
Verify that the passwords for that ID on the two systems are the same.
One very common sourceof this problem is a Win9x system that is trying to map a share on a WinNT (Win2k) system. If there is a user ID in the local user database on the WinNT system that matches the ID the user is logged into on the Win9x system, but the password is different, then this error occurs.
For example: User JOE logs onto a Win9x workstation using the ID JOE and the Password (blank). This ID and Password is validated by the PDC and the user is logged on. Then the user tries to map a share on another server named FILESERVER which is a member server of the domain. On the Local User Database of FILESERVER there is a local user ID for JOE with a Password of XYZ987. When the user tries to map the resource they get the error message listed above. The solution for this problem is to remove the user ID JOE from the Local User Database on FILESERVER or to change the password for JOE on FILESERVER to match the domain password.
This also applies to users who are on a Win9x system trying to connect to an NT system across the network, especially in the case of a Win9x user dialing into an NT system using RAS. If you log onto the Win9x system using the ID JOE and the Password (blank), then bring up a RAS connection using the ID JOE and the Password XYZ987, you will receive a prompt asking for a password for the IPC$ resource. In this case you need to log onto the Win9x system using the ID and Password that will be used in RA