Yes, this should be possible and I managed to get it working here. I did have to do a few things beyond what you listed.
First, make sure your vfiler network is fully configured with ip address, netmask and interface. I did it like this from the pfiler context, per the Toolkit online help:
PS C:\> $b = New-Object NetApp.Ontapi.Filer.Vfiler73.IpbindingInfo
PS C:\> $b.Interface = "e0a"
PS C:\> $b.Ipaddress = "10.61.167.98"
PS C:\> $b.Netmask = "255.255.255.0"
PS C:\> Set-NaVfilerAddress vfiler1 -IpBindingInfo $b
Also make sure your vfiler DNS is configured so you can resolve the domain controller by name.
PS C:\> Ping-NaHost torres.rtprre.testdomain
True
Then try configuring CIFS from the vfiler context:
PS C:\> Connect-NaController dunn -Vfiler vfiler1
Name Address Ontapi Version
---- ------- ------ -------
dunn 10.61.167.60 1.12 NetApp Release 7.3.3: Thu Mar 11 22:29:52 PST 2010
PS C:\> Set-NaCifs -CifsServer DUNNVF1 -AuthType ad -SecurityStyle ntfs -Domain rtprre.testdomain -User Administrator -Password ********
PS C:\> Get-NaCifs
ADSite :
AuthType : ad
DCConnection : {NetApp.Ontapi.Filer.Cifs.ConnectionInfo}
DNSDomainname : rtprre.testdomain
LDAPConnection : {NetApp.Ontapi.Filer.Cifs.ConnectionInfo}
NetBIOSDomainname : RTPRRE
NetBIOSServername : DUNNVF1
SecurityStyle : ntfs
WindowsType : Windows 2003
PS C:\> Test-NaCifs
started
In my case I had to add the vfiler server name to the AD server manually; I'm not sure why, but ONTAP tried and failed to register the name:
Mon Dec 6 15:58:32 EST [vfiler1@dunn (takeover): cifs.ldap.processingFail:error]: LDAP: Could not create Active Directory account for the filer. Error 32: No such object