I just checked this using version 1:4.3p2-5.1 from sid, and it appears to be working as expected.
[EMAIL PROTECTED] tail -2 /etc/hosts.deny ALL EXCEPT sshd: PARANOID sshd: 127.0.0.1 [EMAIL PROTECTED] ssh localhost ssh_exchange_identification: Connection closed by remote host After removing the bottom line from /etc/hosts.deny, I'm able to logon normally.
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