Well, I am at a loss. My sshd service will not accept my password. However, starting sshd like this:
/usr/sbin/sshd &
and then quitting the bash shell (optional) makes sshd work just fine, accepting my password as it should.
Invalid user bme from 127.0.0.1.
Ok, I thought of one thing more to try just after sending my previous email. The above log line (invalid user) prompted me to check the owner of the /etc/passwd file and it was owned by bme (me). I changed it to SYSTEM and the sshd service worked again. I just figured SYSTEM was able to read my files and didn't think twice about it before now.
I am sorry for not figuring this out before sending my email, but it is not always easy to debug foreign applications. :-/
Bernhard
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