With 3.5p1, when setting "PermitRootLogin no" in /etc/ssh/sshd_config, logging in as root is disabled, of course. However, when entering the correct password, ssh prints "Connection reset by peer" and exits immediately. When entering the wrong password, it will prompt you again. I think this qualifies as a security hole, since you can use brute-force tools to try to login as root. Of course you need to have/hack another account to actually have the possibility to become root (via su or other means), but at least you know the password.
are you using PAM?
fixed in -current
This has reoccurred as of 3.6.1p2. With 3.6.1p1, there was no delay for a root login when PermitRootLogin was off regardless of whether the supplied password was correct or not. With 3.6.1p2 and "PermitRootLogin no", an incorrect password for root incurs a delay while a correct password does not. (Apologies if this should have been a new bug.)
definitely fixed in -current (tested PAM and non-PAM)
Mass change of RESOLVED bugs to CLOSED