SamyGO

Especially as you write cifs.ko doesn't need the network. That might have explained it. But if it is not the network then?

Now the problem really, really solved!

Recap:
no manual mount
lsmod shows no cifs.ko
edited samba.init with your if ... >> $LOGFILE
no samygo.log created!
echoed simple "samba init is starting" at the very beginning of samba.init to logfile
still no logfile created
Obviously samba.init is not starting

Paused to think
Execute permissions on the script?
They look ok. Also I can execute the script from a telnet session and it works.

Ok, deleted samba.init
took original samba.init script I had renamed and renamed it back to samba.init

now cifs.ko loads
manual mounts work
edited samba.init to include echo "samba is starting" > logfile
logfile is created
finally removed getserver and getshares and included direct mount commands

It all works!
and a lot faster than 5mins startup in C series.

I think I know what happened. I remember a post somewhere else about not creating samba.init but just to replace it. I renamed the original samba.init for backup. I ftped the file, made the changes I wanted and ftped it back as samba.init, creating the file.

As I could execute samba.init as root via telnet I'm guessing the permissions were not correct for the boot/startup process.

Someone should compile a common mistakes post as well as common troubleshooting tips such as use lsmod, manual mount, early samba.init logfile write.

Also include a more basic samba.init without getshares, getservers but simple mount commands to mount the shares directly. Much easier to troubleshoot and execute.