I am running Pragma Fortress SSH Server Version:  5.0 Build 9 Revision 1370 on a Windows 2008 R2 Server.  SFTP is authenticating perfectly against the domain, however when I attempt to connect using WinSCP it fails.  I am attempting to login with a user that has SFTP rights and can login via SFTP successfully.  I have configured the user on the SCP User screen.  Below is the output from the winscp log.

. 2011-12-15 09:55:25.164 Looking up host "xxx.yyy.com"
. 2011-12-15 09:55:25.164 Connecting to xxx.xxx.xxx.xxx port 22
. 2011-12-15 09:55:25.477 Server version: SSH-1.99-Pragma FortressSSH 5.0.9.1370
. 2011-12-15 09:55:25.568 We believe remote version has SSH-2 ignore bug
. 2011-12-15 09:55:25.568 Using SSH protocol version 2
. 2011-12-15 09:55:25.568 We claim version: SSH-2.0-WinSCP_release_4.3.5
. 2011-12-15 09:55:25.571 Doing Diffie-Hellman group exchange
. 2011-12-15 09:55:25.778 Doing Diffie-Hellman key exchange with hash SHA-1
. 2011-12-15 09:55:25.888 Host key fingerprint is:
. 2011-12-15 09:55:25.888 ssh-rsa 1024 0c:fa:b3:91:dc:6d:91:d7:80:63:ca:67:dc:b4:8d:e2
. 2011-12-15 09:55:25.888 Initialised AES-256 CBC client->server encryption
. 2011-12-15 09:55:25.888 Initialised HMAC-SHA1 client->server MAC algorithm
. 2011-12-15 09:55:25.888 Initialised AES-256 CBC server->client encryption
. 2011-12-15 09:55:25.888 Initialised HMAC-SHA1 server->client MAC algorithm
! 2011-12-15 09:55:26.104 Using username "some.user".
. 2011-12-15 09:55:26.172 Using SSPI from SECUR32.DLL
. 2011-12-15 09:55:26.179 GSSAPI authentication initialisation failed
. 2011-12-15 09:55:26.179 The target was not recognized.
. 2011-12-15 09:55:26.179 Prompt (7, SSH password, , &Password: )
. 2011-12-15 09:55:30.107 Sent password
. 2011-12-15 09:55:30.160 Access granted
. 2011-12-15 09:55:30.165 Opened channel for session
. 2011-12-15 09:55:30.371 Remote debug message:
. 2011-12-15 09:55:30.371 domain\some.user - User is not a configured user allowed access to server through ssh.
. 2011-12-15 09:55:30.573 Server refused to start a shell/command
* 2011-12-15 09:55:30.581 (ESshFatal) Server refused to start a shell/command
* 2011-12-15 09:55:30.581 Authentication log (see session log for details):
* 2011-12-15 09:55:30.581 Using username "some.user".
* 2011-12-15 09:55:30.581
* 2011-12-15 09:55:30.581 Authentication failed.

Thanks in Advance