diff --git a/release/picobsd/floppy.tree/etc/rc1 b/release/picobsd/floppy.tree/etc/rc1
index 00b12ea961fd..a4a0798344f1 100644
--- a/release/picobsd/floppy.tree/etc/rc1
+++ b/release/picobsd/floppy.tree/etc/rc1
@@ -52,8 +52,11 @@ pwd_mkdb -p ./master.passwd
 [ "${inetd_enable}" = "YES" -a -f /stand/inetd ] && \
 	{ echo "Starting inetd."; inetd ${inetd_flags} ; }
 
-[ "${sshd_enable}" = "YES" -a -f /stand/sshd ] && \
-	{ echo "Starting sshd..." ; sshd -f /etc/sshd_config ; }
+if [ "${sshd_enable}" = "YES" -a -f /usr/sbin/sshd ] ; then
+	echo "Starting sshd..."
+	chmod 600 /etc/ssh_host*key
+	/usr/sbin/sshd -f /etc/sshd_config
+fi
 
 echo ''
 cat /etc/motd
diff --git a/release/picobsd/floppy.tree/etc/ssh/sshd_config b/release/picobsd/floppy.tree/etc/ssh/sshd_config
index 5e9688791d42..4529c416fff6 100644
--- a/release/picobsd/floppy.tree/etc/ssh/sshd_config
+++ b/release/picobsd/floppy.tree/etc/ssh/sshd_config
@@ -1,24 +1,23 @@
+# $FreeBSD$
+# minimal config for sshd on picobsd
 Port 22
 ListenAddress 0.0.0.0
 HostKey  /etc/ssh_host_key
-RandomSeed /etc/ssh_random_seed
+#RandomSeed /etc/ssh_random_seed
 ServerKeyBits 768
 LoginGraceTime 600
 KeyRegenerationInterval 3600
 PermitRootLogin yes
 IgnoreRhosts no
 StrictModes yes
-QuietMode no
 X11Forwarding no
 X11DisplayOffset 10
-FascistLogging no
 PrintMotd yes
 KeepAlive yes
 SyslogFacility AUTH
-RhostsAuthentication no
 RhostsRSAAuthentication yes
 RSAAuthentication yes
-PasswordAuthentication no
+PasswordAuthentication yes
 PermitEmptyPasswords no
 UseLogin no
 # CheckMail no