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I'm getting the access denied message too. I did not have a sshd_config file, so i created one in the root of my user account. 'passwordauthentication' is set to yes.
however, how and where do you...

I used to be able to login using Putty.

Now, I get an "Access denied" error after entering password.

Steps:
1. enter ip and click open
2. enter "root" in popup screen
3. enter root password...