/etc/HOSTNAME does not exist :

Instead hostname is set in /etc/rc.conf

######################################################################

/etc/hosts :

#
# /etc/hosts: static lookup table for host names
#

#<ip-address>   <hostname.domain.org>   <hostname>
127.0.0.1               localhost       localhost iskandhar

# End of file


######################################################################


/etc/hosts.equiv  :


localhost
iskandhar


#####################################################################

/etc/hosts.allow  :


#
# /etc/hosts.allow
#
#in.rshd: localhost,iskandhar
sshd : ALL
# End of file


#####################################################################

/etc/xinetd.conf :

#
# /etc/xinetd.conf
#
disable=no
defaults
{
        instances               = 60
        log_type                = SYSLOG authpriv
        log_on_success          = HOST PID
        log_on_failure          = HOST
        cps                     = 25 30
}

includedir /etc/xinetd.d

#####################################################################

/etc/xinetd.d/rsh  :


service shell
{
        flags                   = REUSE
        socket_type             = stream
        protocol                = tcp
        wait                    = no
        user                    = root
        server                  = /usr/sbin/rshd
        log_on_failure          += USERID
        disable                 = no
}


######################################################################


/etc/xinetd.d/rlogin :

service login
{
        flags                   = REUSE
        socket_type             = stream
        protocol                = tcp
        wait                    = no
        user                    = root
        server                  = /usr/sbin/rlogind
        log_on_failure          += USERID
        disable                 = no
}

#####################################################################


/etc/ssh/ssh_config  :


#       $OpenBSD: ssh_config,v 1.26 2010/01/11 01:39:46 dtucker Exp $

# This is the ssh client system-wide configuration file.  See
# ssh_config(5) for more information.  This file provides defaults for
# users, and the values can be changed in per-user configuration files
# or on the command line.

# Configuration data is parsed as follows:
#  1. command line options
#  2. user-specific file
#  3. system-wide file
# Any configuration value is only changed the first time it is set.
# Thus, host-specific definitions should be at the beginning of the
# configuration file, and defaults at the end.

# Site-wide defaults for some commonly used options.  For a comprehensive
# list of available options, their meanings and defaults, please see the
# ssh_config(5) man page.

Host *
#   ForwardAgent yes
#   ForwardX11 yes
#   RhostsRSAAuthentication no
#   RSAAuthentication yes
#   PasswordAuthentication yes
#   HostbasedAuthentication no
#   GSSAPIAuthentication no
#   GSSAPIDelegateCredentials no
#   BatchMode no
#   CheckHostIP yes
#   AddressFamily any
#   ConnectTimeout 0
#   StrictHostKeyChecking ask
#   IdentityFile ~/.ssh/identity
#   IdentityFile ~/.ssh/id_rsa
#   IdentityFile ~/.ssh/id_dsa
#   Port 22
#   Protocol 2,1
#   Cipher 3des
#   Ciphers aes128-ctr,aes192-ctr,aes256-ctr,arcfour256,arcfour128,aes128-cbc,3des-cbc
#   MACs hmac-md5,hmac-sha1,umac-64@openssh.com,hmac-ripemd160
#   EscapeChar ~
#   Tunnel no
#   TunnelDevice any:any
#   PermitLocalCommand no
#   RSAAuthentication yes
#   PasswordAuthentication yes
#   HostbasedAuthentication no
#   GSSAPIAuthentication no
#   GSSAPIDelegateCredentials no
#   BatchMode no
#   CheckHostIP yes
#   AddressFamily any
#   ConnectTimeout 0
#   StrictHostKeyChecking ask
#   IdentityFile ~/.ssh/identity
#   IdentityFile ~/.ssh/id_rsa
#   IdentityFile ~/.ssh/id_dsa
#   Port 22
#   Protocol 2,1
#   Cipher 3des
#   Ciphers aes128-ctr,aes192-ctr,aes256-ctr,arcfour256,arcfour128,aes128-cbc,3des-cbc
#   MACs hmac-md5,hmac-sha1,umac-64@openssh.com,hmac-ripemd160
#   EscapeChar ~
#   Tunnel no
#   TunnelDevice any:any
#   PermitLocalCommand no
#   VisualHostKey no
#   ProxyCommand ssh -q -W %h:%p gateway.example.com
HashKnownHosts yes
StrictHostKeyChecking ask


###########################################################################################



/etc/ssh/sshd_config  :



#       $OpenBSD: sshd_config,v 1.81 2009/10/08 14:03:41 markus Exp $

# This is the sshd server system-wide configuration file.  See
# sshd_config(5) for more information.

# This sshd was compiled with PATH=/usr/bin:/bin:/usr/sbin:/sbin

# The strategy used for options in the default sshd_config shipped with
# OpenSSH is to specify options with their default value where
# possible, but leave them commented.  Uncommented options change a
# default value.

#Port 22
#AddressFamily any
ListenAddress 0.0.0.0
#ListenAddress ::

# The default requires explicit activation of protocol 1
#Protocol 2

# HostKey for protocol version 1
#HostKey /etc/ssh/ssh_host_key
# HostKeys for protocol version 2
#HostKey /etc/ssh/ssh_host_rsa_key
#HostKey /etc/ssh/ssh_host_dsa_key

# Lifetime and size of ephemeral version 1 server key
#KeyRegenerationInterval 1h
#ServerKeyBits 1024

# Logging
# obsoletes QuietMode and FascistLogging
#SyslogFacility AUTH
#LogLevel INFO

# Authentication:

#LoginGraceTime 2m
#PermitRootLogin yes
#StrictModes yes
#MaxAuthTries 6
#MaxSessions 10

#RSAAuthentication yes
#PubkeyAuthentication yes
#AuthorizedKeysFile     .ssh/authorized_keys

# For this to work you will also need host keys in /etc/ssh/ssh_known_hosts
#RhostsRSAAuthentication no
# similar for protocol version 2
#HostbasedAuthentication no
# Change to yes if you don't trust ~/.ssh/known_hosts for
# RhostsRSAAuthentication and HostbasedAuthentication
#IgnoreUserKnownHosts no
# Don't read the user's ~/.rhosts and ~/.shosts files
IgnoreRhosts no

# To disable tunneled clear text passwords, change to no here!
#PasswordAuthentication yes
#PermitEmptyPasswords no

# Change to no to disable s/key passwords
ChallengeResponseAuthentication no

# Kerberos options
#KerberosAuthentication no
#KerberosOrLocalPasswd yes
#KerberosTicketCleanup yes

# For this to work you will also need host keys in /etc/ssh/ssh_known_hosts
#RhostsRSAAuthentication no
# similar for protocol version 2
#HostbasedAuthentication no
# Change to yes if you don't trust ~/.ssh/known_hosts for
# RhostsRSAAuthentication and HostbasedAuthentication
#IgnoreUserKnownHosts no
# Don't read the user's ~/.rhosts and ~/.shosts files
IgnoreRhosts no

# To disable tunneled clear text passwords, change to no here!
#PasswordAuthentication yes
#PermitEmptyPasswords no

# Change to no to disable s/key passwords
ChallengeResponseAuthentication no

# Kerberos options
#KerberosAuthentication no
#KerberosOrLocalPasswd yes
#KerberosTicketCleanup yes
#KerberosGetAFSToken no

# GSSAPI options
#GSSAPIAuthentication no
#GSSAPICleanupCredentials yes

# Set this to 'yes' to enable PAM authentication, account processing,
# and session processing. If this is enabled, PAM authentication will
# be allowed through the ChallengeResponseAuthentication and
# PasswordAuthentication.  Depending on your PAM configuration,
# PAM authentication via ChallengeResponseAuthentication may bypass
# the setting of "PermitRootLogin without-password".
# If you just want the PAM account and session checks to run without
# PAM authentication, then enable this but set PasswordAuthentication
# and ChallengeResponseAuthentication to 'no'.
UsePAM yes

#AllowAgentForwarding yes
AllowTcpForwarding yes
#GatewayPorts no
X11Forwarding yes
X11DisplayOffset 10
X11UseLocalhost yes
#PrintMotd yes
#PrintLastLog yes
#TCPKeepAlive yes
#UseLogin no
#UsePrivilegeSeparation yes
#PermitUserEnvironment no
#Compression delayed
#ClientAliveInterval 0
#ClientAliveCountMax 3
#UseDNS yes
#PidFile /var/run/sshd.pid
#MaxStartups 10
#PermitTunnel no
#ChrootDirectory none

# no default banner path
#Banner none

# override default of no subsystems
Subsystem       sftp    /usr/lib/ssh/sftp-server

# Example of overriding settings on a per-user basis
#Match User anoncvs
#PrintLastLog yes
#TCPKeepAlive yes
#UseLogin no
#UsePrivilegeSeparation yes
#PermitUserEnvironment no
#Compression delayed
#ClientAliveInterval 0
#ClientAliveCountMax 3
#UseDNS yes
#PidFile /var/run/sshd.pid
#MaxStartups 10
#PermitTunnel no
#ChrootDirectory none

# no default banner path
#Banner none

# override default of no subsystems
Subsystem       sftp    /usr/lib/ssh/sftp-server

# Example of overriding settings on a per-user basis
#Match User anoncvs
#       X11Forwarding no
#       AllowTcpForwarding no
#       ForceCommand cvs server


######################################################################################


~/.rhosts  :


localhost
iskandhar alex


########################################################################################



/etc/X11/xinit/xserverrc  :


exec /usr/bin/X

#########################################################################################



As well as add packages openssh, ssh-askpass, xinetd, inetutils


And adding 

ssh-keygen -t rsa
cat ~/.ssh/id_rsa.pub > ~/.ssh/authorized_keys
ssh alex@iskandhar [accept all to permanently add <user> to the allowed users ]
ssh localhost [accept all to permanently add <user> to the allowed users ]