[cobalt-users] ssh - problem

[Gerald Young <me@xxxxxxxxxxx>]

hello i have been searching the archives but am stuck on a ssh problem or two.

Am running linux locally and the server is a raq3


i have setup on server and localhost 
openssl and openssh
started the ssh deamon /usr/local/sbin/sshd ->ok port 22 open ssh running

so locally run ssh-keygen

when i go to login to server message is.
sorry you do not have telnet/shell access

so it looks like i need to activate telnet access for a user to ssh even if telnet is off

so have turned on telnet on server then gone to site management and added a new user (as a site admin )
 but it has next to telnet ->Disabled

the control panel wont let me add telnet for a user??

Question - can i manually activate telnet for this new user if so where and how please?
I can activate telnet for admin but cant get a user going.and think this
 is my problem when i get telnet for my user going i think i then login and
generate my key on server or do i upload my .ssh/identity.pub from localhost to
server?

any ideas greatly appreciated.
b w gerald y