cygwin credential requirements for w2k3?

[MyStiC <mystic dot master at gmail dot com>]

I managed to get member of the "Users" group to login via SSH, however
via SFTP fails.  The prompt appears as follows and is not dependant of
workstation of client.

sftp user@sftp.domain
Connecting to sftp.domain...
user@sftp.domain's password:
Connection closed

This of course works for members of the "Administrators" group.  Even
if "Users" are granted full access to the root, they are still denied,
ie connection closed.  This is the same issue the "Users" had with SSH
so this would lead me to believe the issue is based on group policy
settings.

My questions are...
What are the permission / credential requirements for connecting via
SSH & SFTP and how do they differ?
What group policies does Cygwin require restricted / limited users to
have access to?

Along with the Cygwin report, I have also included the policy
assignment for groups / users.  It is comma delimited.

Another note, I was not successful with getting Cygwin to allow any
users of active directory to authenticate.  I have found an alternate
method so I no longer require this but it would be a great feature.

Attachment: cygcheck.txt
Description: Text document

Attachment: gpedit.txt
Description: Text document

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