smbpasswd is a really old piece of software (9 years!) for generating NT/LM password hashes, suitable for use with Samba. It's in Debian/Ubuntu/Redhat repositories, and FreeBSD ports, and who knows where else.
Somehow it never got submitted to PyPi, but I took care of that today at the request of someone working on another Python module that wanted to use this as a dependency. Look for smbpasswd-1.0.2, or just
easy_install smbpasswd if you're setup for that.
I changed the packaging slightly, so that the tarball extracts to
smbpasswd-x.x.x instead of
py-smbpasswd-x.x.x, and so bumped the version number to 1.0.2 just for the packaging changes. The library itself is unchanged.
However, I think you'd want to be very careful generating and storing LM hashes of user's passwords, they seem to be wildly insecure.
If your app can get by with just NT hashes, and you have a Python >= 2.5, you may be able to generate those using the standard Python library, and don't need this package at all. See the notes on my py-md4 page.