Inside Samba: Windows Sharing for the Mac
Subject:   chdir failed
Date:   2003-05-23 11:10:13
From:   jldera
Response to: chdir failed

Sounds like a permissions error. Assuming you're not running xinetd as a user other than root, you probably have some modified permissions on your disk. Run the command sudo diskutil repairPermissions / to restore the Apple designated permissions.