How do I configure freeSSHd on Windows Server 2008 so I can log in using ssh?

I've installed freeSSHd on a Windows Server 2008 box (following the instructions in How to install an SSH Server in Windows Server 2008), including:

• created a user named "dspitzer" with NTLM authorization
• opened an exception for port 22 in the Windows Firewall

But when I try to connect (from a Mac OS X 10.5.8 command-line), I get permission denied after entering the password:

$ ssh 12.34.56.78
dspitzer@12.34.56.78's password: 
Permission denied, please try again.
dspitzer@12.34.56.78's password: 
Permission denied, please try again.
dspitzer@12.34.56.78's password: 
Received disconnect from 12.34.56.78: 2: Too many attempts.

I've also tried:

$ ssh dspitzer@12.34.56.78
dspitzer@12.34.56.78's password: 
Permission denied, please try again.
dspitzer@12.34.56.78's password: 
Permission denied, please try again.
dspitzer@12.34.56.78's password: 
Received disconnect from 12.34.56.78: 2: Too many attempts.

I've also tried changing the authorization to "Password stored as SHA1 hash" and entering a simple password, but I get the same problem. And I've tried a different user name ("Administrator") with no luck.

I've confirmed that I am connecting to the server I'm configuring—if I stop freeSSHd and try to connect I get:

$ ssh 12.34.56.78
ssh: connect to host 12.34.56.78 port 22: Operation timed out

I get the exact same results from a Linux command-line.

Any advice or troubleshooting tips?

Update: I tried disabling the firewall (in response to geeklin's comment) and it made no difference.

Update #2: I no longer have this machine (I've changed employers), so I have no way of verifying the answers. I guess all I can do is make this question "community wiki".

From serverfault Daryl Spitzer

• Well, I realize the SSH command line client should work fine, but as a troubleshooting tip I would try to connect to the SSH server using a windows Putty client and see what happens. Also, run "netstat -anb -p tcp" at the dos command line to see if the port is actually listening on 22.

  From djangofan

• I was having similar problems with freeSSHd 1.2.6.22: access denied when connecting (putty or unixutils ssh).

  Following an advice found on the Internet, I tried reinstalling freeSSHd, as crazy as it may seem. To my surprise, I was able to set up both an NT user account and an SHA1 one.

  However, the problem seem to return occasionaly. Restarting freeSSHd might help.

  From Helgi

• Try the following:

  ssh -v 12.34.56.78
  

  This will tell SSH to output verbose messages about what its doing. It probably wont reveal anything, but its worth a shot.

  Also another reason why its not letting you in is because the shell hasn't been properly set or the permissions forbid freeSSHd from running it. Is freeSSHd running as an unprivileged user?

  From Nathan Adams

• I installed freeSSHd just last night and ran into this same issue. The problem seems to be that I installed freeSSHd as a Windows service. When The windows service is running, it doesn't pick up the user accounts. Did you also install freeSSHd as a service?

  Now, if I log into the server, stop the freeSSHd service, and start up freeSSHd from the desktop icon or start menu, I get a little icon in the tray. Double clicking it brings up a properties window, and I can start the server from there. If I run the server from here, I am able to log in with those user accounts.

  It's good to know I can SSH in at all, but it defeats the purpose of having a Windows service if I can't use it. Has anyone else come across this issue and been able to fix it?

  I have tried having the server running locally, and then also starting the service. I can log in, but then when I stop the local server, I can't connect anymore. It's as if the service isn't running.

  I've tried running the service and starting the server locally at the same time, but I can't start the server locally after the service is running.

  I've tried modifying the service so that it logs on as my administrator account. That didn't seem to help.

  This is driving me mad! Has anyone been able to configure freeSSHd to work as a service with accounts? Has anyone else got experience with other SSH servers for Windows Server 2008?

  Jeff Atwood : not really an answer but might have some troubleshooting ideas for others.
  From Kyle Tolle

• I have the same problem, If I try to load SSHd as a service but it ignores the configuration. If I stop the service and then run the app from the application (first tab) it works correctly.

  The file .ini containing configuration in the program directory seems to stay not configured.

  When sshd works (launched as above) if I edit file ini from sshd I see it correctly configured when if I see it directly from the server it was void (not void but without configuration.)

  Any idea?

  Jeff Atwood : not really an answer but might have troubleshooting ideas for others.
  From Luke