sshd not working properly

[Andy Wood]

Hi,

I've installed Cygwin and OpenSSH on a Windows machine and set up the
sshd daemon as follows:

mkpassd -l > /etc/passwd
mkgroup -l > /etc/group
chmod +r /etc/passwd /etc/group
chmod 777 /var
ssh-host-config
cygrunsrv -S cygsshd

SSH now works for user account that set up SSHD, ie 'ssh
admin@localhost' works fine.
However, it doesn't work for another account:

ssh -v other_user@localhost
debug1: Offering public key: ...
Connection closed by ::1 port 22

...and there's an error in the Windows event logs:

sshd-session: PID 1393: fatal: seteuid 4096: Function not implemented

This looks like a bug. Can anyone help? Is there a work-around?

Thanks,
Andy.