Lion has upped the anti on AFP security. To connect to older, legacy Novell servers one needs to do the following …

sudo chmod o+w /Library/Preferences
sudo defaults write /Library/Preferences/com.apple.AppleShareClient afp_host_prefs_version -int 1
(creates the file)

Connect to an AFP server like MacSus to populate file created above

sudo defaults read /Library/Preferences/com.apple.AppleShareClient afp_disabled_uams
(to see a list of the disabled login methods)
sudo defaults write /Library/Preferences/com.apple.AppleShareClient afp_disabled_uams -array
(to remove all from disabled list)
sudo defaults write /Library/Preferences/com.apple.AppleShareClient afp_disabled_uams -array “Cleartxt Passwrd” “MS2.0”
(to keep a few disabled – I don’t know which are the problem so I undisable all of them)
sudo defaults read /Library/Preferences/com.apple.AppleShareClient afp_disabled_uams
(to confirm the change)
sudo chmod o-w /Library/Preferences
(to reset the directory prefs)

For details see:
http://support.apple.com/kb/HT4700