The response 'unrecognized service' is because you used ssh instead of sshd. Have a look at my post #14, you should have executed:
service sshd status
but if you were able to ssh to localhost then the daemon is running and most likely your Norton firewall is the culprit. I'm not familiar with that firewall software but if you can deactivate it, then do so, try to connect and if you're successful, configure Norton Firewall to allow SSH traffic on port 22.