Here's what worked for me:
Ran ssh-host-config as administrator and took defaults, except
priviledge separation => no
install as a service => no
Then, I chown'd /var/empty to Administrator and was able to run
"sshd -p 8100" and ssh into the box.
More importantly, other users were able to start
> $ /usr/sbin/sshd.exe -p 8100
> /var/empty must be owned by root and not group or world-writable.
> ...
> drwxr-x--x+ 1 Administrator Administrators 0 Mar 16 10:08 empty/
Try making the owner of this directory the same as the Windows user that is
running the sshd service. I think this is a hard
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