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I just installed cygwin and ssh-host-config -y on two new laptops running Windows8-Home. On one of them, sshd starts, on the other it doesn't:

C:\> net start sshd
System error 1068 has occurred.

This is described by Dan Regan in the cygwin blog on this cygwin project mailing list item. The problem seems to be related to logging in and the NetLogon service, but wasn't fully resolved.

What is the solution?

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up vote 2 down vote accepted

I've seen a few blogs out there that raise this problem but I couldn't comment on them so I've decided to create my own question here and answer it myself.

When I opened up the Services applet on both machines and compared the entries, the user account that service was running as differed.

The working sshd used the id .\cyg_server
The broken sshd used the id MY-HOSTNAME\cyg_server.

Changing the broken login to .\cyg_server fixed it.

Also, "Cygwin sshd did not start due to a logon failure" suggests using a more modern script, cyglsa-config to install cygwin but I did not try that.

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