Openssh on Windows XP SP2 sshd service stops when attempting to connect.

[koan]

Hello,

I have read what I can find, but am getting stuck with sshd.  I am using 
Openssh 3.9p1-2.  My service starts fine, and I am running it with -d -d 
-d -e parameters (set in registry), I used -v -v -v on the ssh command line.

My key files are owned by SYSTEM:none, and are read-write for owner 
only.  /var/empty is owned by SYSTEM:SYSTEM, and is 700,

I have run ssh-host-config, and ssh-user-config, and I have mkpasswd and 
mkgroup synced my Windows users with cygwins.

If I try ssh to localhost, 127.0.0.1 on the machine the sshd service is 
running, it negotiates for a bit, and then the connection fails, and the 
sshd service stops.

I want to use password authentication.  I have tried a seperate client 
(secureCrt)

If I run change ownership of /var/empty to my own user, and then run 
sshd in a window, I can connect ok (last time I tried).

Please find attached my cygcheck.out, the sshd.log and the ssh.log from 
the console.

If anyone can help, it would be great.

koan

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