I have successfully installed and configured the sshd server in the my winxp machine and found working fine. After I login from a remote machine, when I give a gui application based command such as "notepad.exe", Nothing is opened in the server. But I can see the notepad process running in the server machine through the task manager. I am unable to look the GUI Part. But the telnet server resides in the CYGWIN package was successfully opening the GUI Based application in the server, when it is invoked from the remote machine. I don't whether this is a bug or some configuration has to be done. Please get back to me if you need any more info.
Notepad is a Windows app not an X11 app. OpenSSH does X11 forwarding and doesn't deal with Windows GUI apps.
Change all RESOLVED bug to CLOSED with the exception of the ones fixed post-4.4.