Thanks to Hans Schwengeler...
In my case the problem was solved by setting "UsePrivilegeSeparation no"
in the /etc/ssh/sshd_config file.
On Fri, 24 Jan 2003, dark side arranged electrons like so:
> > I am remotely logging into Tru64 4.0F running openssh-3.4p1 sshd as a
> > normal user and I get the following error...
> > Too many users logged on already.
> > Try again later.
> > Connection to host closed by remote host.
> > Connection to host closed.
> > Do you have any idea what might be happening. I have tried "lmf reset".
> are you able to login any other way (or were you able before)? I have
> had this happen because my OSF-BASE license pak was not entered through
> the license manager...