We are sorry for the duplicate message. Thank you all for the good answers.
First of all we have to take a decision of either to use dropbear(embedded ssh2 protocol,using libtomcrypt libaries) or OpenSSH(using OpenSSL libaries). We have looked at the two libaries and it looks like libtomcrypt might be a tad more friendly to use. Any experience whats best and easiest to use of the two libaries? Michael we are not thinking of using a softprocessor on the FPGA, as it would complicate and slow matters more than necessery. We are thinking of a pure hardware solution. Thank you all for your help!