objectclass: value #0 invalid per syntax - no trailing spaces however

[Bill and Calanite Logan <calnbill@netvision.net.il>]

I am trying to form an understanding of ldap by using openldap and 
tutorials that I have found on the internet.

I have the following problem (well, this is the one I have given in to 
and decided to post)

the ldif file:

version: 1

## version not strictly necessary but good practice to include for future

## DEFINE DIT ROOT/BASE/SUFFIX ####
## uses RFC 2377 format

## dcObject is an AUXILLIARY objectclass and MUST
## have a STRUCTURAL objectclass (organization in this case)
# this is an ENTRY sequence and is preceded by a BLANK line

dn: dc=localhost
dc: localhost
description: The best company in the whole world
objectClass: dcObject
objectClass: organization
o: Example, Inc.

## FIRST Level hierarchy - people
# this is an ENTRY sequence and is preceded by a BLANK line

dn: ou=people, dc=localhost
ou: people
description: All people in organisation
objectClass: inetOrgPerson

## SECOND Level hierarchy - people entries
# this is an ENTRY sequence and is preceded by a BLANK line

dn: cn=Joe Schmo,ou=people,dc=localhost
objectclass: inetOrgPerson
cn: Joe Schmo
sn: Schmo
uid: jschmo
mail: joe@mydomain.com
mail: r.schmo@mydomain.com
ou: sales

returns this error code:

adding new entry "dc=localhost"
ldap_add: Already exists (68)

adding new entry "ou=people, dc=localhost"
ldap_add: Invalid syntax (21)
       additional info: objectClass: value #0 invalid per syntax

adding new entry "cn=Joe Schmo,ou=people,dc=localhost"
ldap_add: Invalid syntax (21)
       additional info: objectclass: value #0 invalid per syntax

when the command

adding new entry "dc=localhost"
ldap_add: Already exists (68)

adding new entry "ou=people, dc=localhost"
ldap_add: Invalid syntax (21)
       additional info: objectClass: value #0 invalid per syntax

adding new entry "cn=Joe Schmo,ou=people,dc=localhost"
ldap_add: Invalid syntax (21)
       additional info: objectclass: value #0 invalid per syntax

is used. There are no trailing spaces, by editor trimmed them. I also 
saved it as an OEM and as  an ANSI text file. The text editor is 
UltraEdit. I also used notepad to make sure it wasn't caused by the 
editor. The OS is Windows XP. The version of openLDAP I obtained as a 
binary from

http://lucas.bergmans.us/hacks/openldap/

and it is based on 2.2.15 for win32.

Any help would be most appreciated.

Thanks

Bill Logan