Error starting net start sshd using Win2k3

I installed OpenSSH and the packages for Cygwin. I set the environment
variables and did mkgroup and mkpasswd.
I was able to start opensshd until I loaded Cygwin.
When I loaded Cygwin I renamed the cygwin1.dll in the C:\Program
Files\OpenSSH\bin directory because a newer version was loaded with
Cygwin.
When setting up ssh-host-config I answered yes to all questions.
Now when I try to run net start sshed I get this error:
$ net start sshd
The CYGWIN sshd service is starting.
The CYGWIN sshd service could not be started.

A system error has occurred.

System error 1067 has occurred.

The process terminated unexpectedly.

This is a fresh install of win2k3 so there should not be any conflicts
with other apps.
One thing hat I did notice when I was setting up the ssh-host-config it
prompted me to create user and password for sshd_server which I did.

Any help would be greatly appreciated. I have set it up before and had
not problems. I have also read a lot of docs on the web and am at a
loss.

.