built openssh-3.2.2p1 for solaris 2.7, 2.8. ssh works fine, but the sshd is not
usable. Login proceeds past the password stage, then sometimes hangs. If not
hung, then su fails. 

/var/adm/messages (login hung) says

 May 17 17:05:06 kalessin sshd[3846]: [ID 800047 auth.error] error: open /d\
ev/tty failed - could not set controlling tty: No such device or address

OpenSSH_3.1p1 works fine.

Here's the configure

./configure \
   --sysconfdir=/etc/openssh \
   --with-kerberos4=/opt/kerberos \
   --with-pam \
   --with-cflags=-I/dsw/gca-local/include \
   --with-ldflags='-L/dsw/gca-local/lib -R/dsw/gca-local/lib' \
   --with-ssl-dir=/dsw/gca-other/openssl-0.9.6d 

(openssh-3.1p1 was built with openssl-0.9c, if that makes a difference)