ssh to localhost fails in qemu for lucid image

Binary package hint: rootstock

Running Ubuntu Karmic x64 host. Using a patched version (version 31) of the karmic rootstock script.

Create the lucid image:

$ sudo ./rootstock --fqdn ssh-test --login demo --password demo --imagesize 1G --seed ubuntu-minimal,openssh-server --dist lucid --notarball

and start qemu with

$ qemu-system-arm -M versatilepb -cpu cortex-a8 -kernel vmlinuz -hda qemu-armel-201003252208.img -m 256 -append "root=/dev/sda mem=256M devtmpfs.mount=0 rw"

The command "ssh demo@localhost" will prompt a RSA fingerprint warning and the password query. When the password has been entered, the login locks up.

The lockup is not limited to localhost. The same lockup applies if a ssh session is tried connected from any internal or external network source on all network devices, like the host tun/tap interface. tcpdump reveals that the guest receives the messages from the ssh client, but does not reply to them.