should be (NOTE the ‘’ enclosing sshd privsep, should be ”)

useradd -g sshd -c ‘sshd privsep’ -d /var/empty -s /bin/false sshd

AND

groupadd ssh should be groupadd sshd

#!/sbin/sh
#
# Copyright 2004 Sun Microsystems, Inc. All rights reserved.
# Use is subject to license terms.
#
# ident “@(#)sshd 1.4 04/11/17 SMI”

SSHDIR=/usr/local/etc
KEYGEN=”/usr/local/bin/ssh-keygen -q”
PIDFILE=/var/run/sshd.pid

# Checks to see if RSA, and DSA host keys are available
# if any of these keys are not present, the respective keys are created.
create_key()
{
keypath=$1
keytype=$2

if [ ! -f $keypath ]; then
grep “^HostKey $keypath” $SSHDIR/sshd_config > /dev/null 2>&1
if [ $? -eq 0 ]; then
echo Creating new $keytype public/private host key pair
$KEYGEN -f $keypath -t $keytype -N ”
return $?
fi
fi

return 0
}

# This script is being used for two purposes: as part of an SMF
# start/stop/refresh method, and as a sysidconfig(1M)/sys-unconfig(1M)
# application.
#
# Both, the SMF methods and sysidconfig/sys-unconfig use different
# arguments..

case $1 in
# sysidconfig/sys-unconfig arguments (-c and -u)
‘-c’)
create_key $SSHDIR/ssh_host_rsa_key rsa
create_key $SSHDIR/ssh_host_dsa_key dsa
;;

‘-u’)
# sys-unconfig(1M) knows how to remove ssh host keys, so there’s
# nothing to do here.
:
;;

# SMF arguments (start and restart [really "refresh"])
‘start’)
/usr/local/sbin/sshd
;;

‘restart’)
if [ -f "$PIDFILE" ]; then
/usr/bin/kill -HUP `/usr/bin/cat $PIDFILE`
fi
;;

*)
echo “Usage: $0 { start | restart }”
exit 1
;;
esac

exit $?