Well, I seem to have gotten it working. Opened b4smb.cmd in a text editor and near the top of the file there is a line:
DHCPWait = 1 /*Wait until an address was obtained by the DHCP server*/
Set '1' to '0' and the IP address change craziness is gone. Server seems to start OK.
I installed the server using defaults, but when I run 'smb test' I get 2 errors for deprecated settings that were automatically set. So I turned OFF 'Null Passwords' (using SSCC) under 'Global' and turned ON 'Share Modes' under 'Netlogon'. Errors are now gone.
Also all my drives were setup and shared by default, but they are setup as, for example, 'C:\', but this is wrong, it should be 'C:'. This can be changed just by browsing for the drive by clicking on the folder to the right.
Now I can connect to shares on my clients and browse the directories. I'll try sharing and connecting to a printer next....
Thanks Herwig and everyone at Netlabs for making SAMBA on OS/2 possible!