You might try reconfiguring with "privilege separation" turned on. Also, turn on auditing of failed file access, and/or run sysInternals RegMon and FileMon.
I think your sshd_server user doesn't have permission to execute Winsock2 which is %SYSTEMROOT%\System32\ws2_32.dll or one of it's dependencies. Did you also check the Application Event Log? -- Unsubscribe info: http://cygwin.com/ml/#unsubscribe-simple Problem reports: http://cygwin.com/problems.html Documentation: http://cygwin.com/docs.html FAQ: http://cygwin.com/faq/