Debian Potato SSH

[Jason J <jasonj@innominatus.com>]

I have had Debian Potato running an sshd for several months with no
problems. All of a sudden sshd is refusing connections.
/var/log/auth.log
Jul 27 11:00:48 guru ssdh[1003]: refused connect from #.#.#.#

sshd is running as a stand alone daemon.
I have made no modifictions to the standard apt-get install ssh.
I have tried from multiple ip addresses.
Appears to block all sshd connections even from localhost.

I had shut off telnetd as well, since ssh was running fine and secure. I
have telnet-ssl up in the mean time.
Sucked.

Any help would be appreciated.