diff --git a/tests/README b/tests/README
index 11d42d415a..fc31405e75 100644
--- a/tests/README
+++ b/tests/README
@@ -10,7 +10,7 @@ Requires:
   perl (and a unix-style shell)
   diff (when a test fail, a diff is shown)
   stunnel (for HTTPS and FTPS tests)
-  sshd (for SCP and SFTP tests; OpenSSH ver. 3.9 is known to work)
+  sshd (for SCP and SFTP tests; OpenSSH ver. 3.8 is known to work)
 
 TCP ports used:
 
diff --git a/tests/sshserver.pl b/tests/sshserver.pl
index 07762c2b12..83fdbc7aff 100644
--- a/tests/sshserver.pl
+++ b/tests/sshserver.pl
@@ -91,6 +91,8 @@ print FILE <<EOF
 # This is a generated file!  Do not edit!
 # OpenSSH sshd configuration file for curl testing
 AllowUsers $username
+DenyUsers
+DenyGroups
 AuthorizedKeysFile $path/curl_client_key.pub
 HostKey $path/curl_host_dsa_key
 PidFile $path/.ssh.pid
@@ -98,6 +100,7 @@ Port $port
 ListenAddress localhost
 Protocol 2
 AllowTcpForwarding no
+GatewayPorts no
 HostbasedAuthentication no
 IgnoreRhosts yes
 IgnoreUserKnownHosts yes
@@ -111,6 +114,7 @@ StrictModes no
 Subsystem sftp $sftp
 UseLogin no
 X11Forwarding no
+UsePrivilegeSeparation no
 # Newer OpenSSH options
 UsePam no
 UseDNS no