I'm trying to setup a chrooted enviroment for users that login through ssh. I have installed libpam-chroot and have configured security.conf and added "session required pam_chroot.so debug" to /etc/pam.d/ssh but now when the chrooted user logs in, putty says "Server unexpectedly closed network connection." I have run the setup-chrootdir-shell.sh script to make sure the directory has basic utilities like the shell.

Something else I have noticed when setting this up is that I can't chroot to the directory (or any directory) manually. For example as root I type 'chroot /jail' and it returns 'chroot: cannot run command `/bin/bash': No such file or directory'. I also try 'chroot /jail /bin/bash' and it returns the same message. I don't understand why it says this because /bin/bash exists. Is this a bug or something? I am running Debian 3.1 stable.

i know whats going on. i had that.
basically, when you chroot, your new destination root must contain bash(or an alternative shell which you must specify as an option), your new bin/sbin directories(if you dont have then there is no commands you can run, even ls), and you must have the libraries that bash uses.
read here:
every program/command you have trouble with after you chroot, do:
ldd target_program_with_path
and it will display what i need. and put that in.

as i see you also have issues with ssh(which i had too with ssh set up by default). basically you need to generate a set of "keys" in order for you connection to work.(as i understand the key is needed for encryption)
i went through hell and high water with setting up ssh... it took me so long i cant tell you all the steps. but until your client displays a message whether you want to accept the key, you are no go.
reinstalling ssh should generate the keys automatically for you. thats what i ended up doing i think.

cant post URLs till i make 3 posts. stupid forum rule. read in the next post.

Thanks a ton. I have been tampering with this all day, can't believe the solution was so simple