Trying to connect Cygwin on host server from remote server using Putty SSH client

I've setup Cygwin on an Windows 2008 R2 server and I been able to start the Cygwin service for my OEM host server. Now I am trying to test my Cygwin install by connecting from an SSH Putty client on a Windows 2008 R2 remote machine using port 22.. PuTTY works when using port 22, the key is downloaded and the login appears in the terminal box, I send the username to the host server and then the password and I get an access denied. I've tried changing the password of the SSH service on the host server and restarted the service and that didn't work. The Putty session appears to finding the host server but I'm able to connect to it. I've put in an SR with Oracle but they are suggesting that I create a Cygwin install on the remote client machine. But I should be able to test my host install by using a SSH Putty session. I've included my log from my last attempt. Any Ideas to help solve this would be helpful. Also don't know if firewall is any issue this is my first time installing this so it would be helpful to know if it is before I ask my SysAdms to open one up.

Thanks,
7Souls
putty.log