I am having issues setting up OpenSSH for Windows, using public key authentication.
I have this working on my local desktop and can ssh with a key from Unix machines
If you are using mls-software.com's version of OpenSSH here is another note.
If you install using the SSHD_SERVER account and privilege separation you will be able to use public key authentication (per http://www.mls-software.com/opensshd-pki.html). However if UAC is enable you will not be successful with the install. The user(s) will not be created properly and the service will not be created. Manually trying to get these items up after the fact is very difficult. Simply disabling UAC before installation will allow the installation process to properly create the user(s) and the service. After installation you can re-enable UAC.
When I created the SSHD_SERVER account manually authentication succeed when using password authentication but the client termination the connection with "/bin/bash: Operation not permitted". Authentication with public keys was closed by the server (original error posted by Cambolie).