After my system (WindowsXP, Service Pack 3) installed four security updates from Microsoft on 15 July 2009, all connections to the OpenSSH server by Putty or by FTP clients are being blocked. No notification occurs at the server; the programs on the connecting computers simply time out with no response from the server. Disabling the Windows firewall allowed full access by both programs, just as before the updates. Putty, CoreFTP, and Filezilla are all listed in the firewall exemptions, and all other settings are consistent with the way I have been running for some time. I even tried uninstalling OpenSSH and reinstalling it, with no effect. The Windows security updates installed were: Windows XP Cumulative Security Update for ActiveX Killbits for Windows XP (KB973346) Wednesday, July 15, 2009 Automatic Updates Windows XP Security Update for Windows XP (KB971633) Wednesday, July 15, 2009 Automatic Updates Windows XP Windows Malicious Software Removal Tool - July 2009 (KB890830) Wednesday, July 15, 2009 Automatic Updates Windows XP Security Update for Windows XP (KB961371) Wednesday, July 15, 2009 Automatic Updates
If it works without the firewall enabled then you've proven that it's not a problem with sshd. Also, if your version really is 3.8p1 then you're probably using the long-since-obsolete package from sourceforge. If you're having problems with that package then you need to contact the supplier of the package. I would suggest using the current cygwin package instead, since it's much, much more up to date. Either way, we can't help you with Windows problems.
Mass move of RESOLVED bugs to CLOSED now that 5.3 is out.