I have installed FreeSSHD recently onto my desktop computer, I think its cool to have an SSH server that allows me to run commands remotely just like in Linux. Even if it is stupid MSDOS (I would much prefer an actual emulation of the Linux command line ).
I quickly hit a problem however, it didn't matter what I did, I could not login to the SSH Server, it would ask for my Username and Password and then tell me “Access denied”.
I found the solution, in the FreeSSHD settings go to “Authentication”, make sure “Password authentication” is set to “Required”. And set “Public key authentication” to “Disabled”.
It works fine for me now