Hi, Paul
My connection WinSCP to WinSSHD working very well. I have used Cygwin as terminal shell - I have set "C:\cygwin\bin\bash --login" in Setting->Shell item.
Of course, you must have allow "Permit shell" in setting box. Shell initial dir is not important.

And how to set WinSCP? I use last version WinSCP. Connection is workig also with default setting, only with fill up IP, port, Login and passw or private key. That is all.

Note - test: You will have setting ready, if You will connection with Tunnelier a his tool "bvterm" will have using Cygwin's bash.

Sorry, I don't using Putty, I am not able tell you anything about this. But it must to be similar!
James

Since the demise of the OpenSSH for Windows project, I've been looking for a suitable replacement, and I'm particulary impressed with WinSSHD by BitVise.

According to their Usage FAQ (https://bitvise.com/ssh-server-usage-faq), WinSCP can be configured to work with WinSSHD, by installing Cygwin and seting up WinSCP to use a BASH shell. I have done this on a test box, and I have configured a test user to use a BASH shell. Things work perfect when making a SSH connection with puTTY, but I'm not having luck with configuring WinSCP to make a proper connection.

Has anyone else out there been able to get WinSCP to work with WinSSHD? Any tips would be appreciated. Thanks.

Paul