I had the same issue with non-administrators not being able to login to ssh sftp except copying cygwin1.dll did not fix this issue and in fact caused the sshd service to fail to start.
I had to use the ntrights program to add the interactivelogon right to the user loging in. See: http://support.microsoft.com/kb/315276 ntrights -r SeDenyInteractiveLogonRight -u username ntrights +r SeInteractiveLogonRight -u username That seems to fix the issue. Thanks. Allan -- Problem reports: http://cygwin.com/problems.html FAQ: http://cygwin.com/faq/ Documentation: http://cygwin.com/docs.html Unsubscribe info: http://cygwin.com/ml/#unsubscribe-simple