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I'm having trouble logging in to my server via ssh (PuTTY) on a new username that I created.

During the initial installation of the server, I set up a username of "admin". While logged in as "admin" I ran the following command: sudo useradd tempuser, then entered the password for the new username.

From my Windows box, I connect to the server and enter the new username, "tempuser", and hit Enter. Now it asks for the password. I've entered it successfully a couple of times and I receive the error Access denied each time.

Do I have to add this new user somewhere else in order to log in via SSH?

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Depends on your /etc/ssh/sshd_config. If you have the option AllowUsers defined, you'd need it there for sure. sshd manpage – nerdwaller Jan 14 '13 at 4:12
Thank sparked something there. I remember editing the sshd_config for something, its been awhile. I'll take a look, thanks again! – Muhnamana Jan 17 '13 at 1:54
Yep sure enough, tempuser was not defined in the AllowUsers entry. Thanks again! – Muhnamana Jan 17 '13 at 1:58
Glad to hear it, good learning experience! – nerdwaller Jan 17 '13 at 5:18
up vote 1 down vote accepted

You want to add tempuser to your sshd_config file.

To do so at a prompt:

sudo nano /etc/ssh/sshd_config

Look for a line that, by default, reads: #AllowUsers; you want to change it to (or add it, if it doesn't exist, as) AllowUsers tempuser

Save the file - in nano it's Ctrl+O (that's the capital letter "o") then Ctrl+X to quit, then type sudo service sshd restart to load the new config.

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