And are you logging in remotely using scp or sftp since that is what this shell apparently restricts the user to do?
"rssh is a restricted shell for use with OpenSSH, allowing only scp and/or sftp. It now also includes support for rdist, rsync, and cvs. For example, if you have a server which you only want to allow users to copy files off of via scp, without providing shell access, you can use rssh to do that."
If your just trying to login normally, then rssh is doing it's job to deny you direct shell access. Try scp'ing a file to and or from the server to test it's functionality.
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