Hmm.  Not familiar with running ssh inside of inetd.  I usually run it as a
stand alone daemon and use the config to set allow and deny rules.  By default
the sshd should allow any valid user to login from anywhere.

When I connect using the command line ssh I do:

ssh -l <user> <host>

I'm curious what the /etc/hosts.{allow,deny} files say.  

> Okay guys, I'm having a few SSH authentication issues with a server I
> recently setup. Every time I try to do an 'ssh -C <ip here>' and it asks for
> my password, I get a "permission denied, please try again." message. Yes,
> I'm attempting to login as a user I know exists and has the password I need,
> and the configuration settings are stock. SSH is running via inetd. Any ideas?