My Iyonix connects to my XP machine fine. No problems at all. I have never heard of LMConnect, nor have I ever used it, nor do I think you need it. In contrast to what you wrote, the command IS there: You may have wanted to try LanMan:LMConnect and read the section in the PRM about filing system specific commands. But maybe you think that reading manuals also takes away the fun out of RISC OS computing?
Maybe *configure LMTransport IP would have helped, but like the command reference above, this really is a RISC OS thing, not an Iyonix thing.