It sounds more like a digital sender issue than an LDAP issue.  They're authenticating sufficiently to scan one doc, after all.  Not that it isn't a problem, but may not be LDAP related per-se.

It may have something to do with licensing, but that wouldn't necessarily be an LDAP issue.  When the Digital Sender sends files to the users' folder, is it connecting directly to NetWare as a client?   Or is it sending a message of some sort through a fax or messaging server, which is what I thought Digital Senders did?

If it's connecting to NetWare as a client, how is it connecting, through a Novell client, or through NFAP/CIFS, or through NetStorage, or some other method?

LDAP authentication isn't the same thing as connecting to a server.  Unless you're using NetStorage or iFolder, it wouldn't be "logging you in" - it might only serve as a repository of user information that another program can use as an authentication vehicle.

Do you have sufficient licenses for everyone to be logged in?  If so, are you limiting connections?  How many servers do you have?  Have you verified that your user licenses are not associated to any specific servers?  They should not be.  

It's not unheard of that a user might take more than one license if their licensed connections are different modes.  If they're logged in via the Novell Client32 on their desktop and then walk over to the D.S. and log in via NFAP/CIFS or NetStorage, or logs into a Mac and mounts a server volume using AFP, that second connection might actually take a second license, which sucks, but I haven't dug into whether it can be "fixed."  What I do is, once in a while, I'll check to see who has multiple licenses associated (using a reporting tool like DSReport by Wolfgang Schreiber) and unassociate all but the most current one, to make sure I don't hit a ceiling.

Yes we have enough licenses for everyone to be logged in.
As I understtod it, it needs ldap to connect to the netware network.
The user logs into the DS with there network id and password. There is no cifs or other method that it is connecting with.
There is no fax or messaging server either. The DS is simply a high end network scanner.
Once the user is logged in they can only scan to folders they have access to.
So I am thinking it logs in as a client from the DS.
The users have no limits for concurrent connections.
I have talked with HP twice and, of coarse, they don't have much help to offer
for netware. All they say is that it will work with netware, but your pretty much left on your own to figure it out.
 

Does the DS PC have the Novell Client32 on it, or the crapware(tm) client for NetWare that comes with Windows, or what?

It has to have some sort of client to get access to NetWare volumes.

There is no DS pc. The DS is a stand alone unit.

Then what is the DS service you mentioned that's running on an XP box used for, and why would it lock out access until that service is restarted?  Does that run on everyone's PC?  

What is the model number of the device, so I can look up the documentation online?

It's a digital sender 9250c.
The ds service runs on one computer and is used to configure it.
The actual logging in is done on the DS itself.
The service is what tells it what ldap server to use and is also used to set up the pre defined folders.
here is a link to the manual: http://bizsupport.austin.hp.com/bc/docs/support/SupportManual/c00859831/c00859831.pdf