Linux – SSH error. Error installing a service: CreateService: Win32 error 1057

ssh-host-config is not working, I get this error at creating sshd as a service. I'm running Windows 7 32 bit with cygwin installed.

It was working at first, after installing cygwin. I did ssh-host-config a few times. I wanted to be sure to change the configuration of ssh and sshd so I uninstalled. Can't remember if there was an error. I used these instructions when uninstalling and reinstalling.

I followed the instructions on this site and suspect that changing the permissions on those directory's messed up my system. Somewhere, can't remember where, I saw a error/warning message about ownership and that it would mess up things. Maybe it's a good tutorial I don't know.

Here is the error:

/usr/bin/cygrunsrv: Error installing a service: CreateService:  Win32 error 1057

Here is ssh-host-config:

 ~
$ ssh-host-config -y

*** Query: Overwrite existing /etc/ssh_config file? (yes/no) yes
*** Info: Creating default /etc/ssh_config file
*** Query: Overwrite existing /etc/sshd_config file? (yes/no) yes
*** Info: Creating default /etc/sshd_config file
*** Info: Privilege separation is set to yes by default since OpenSSH 3.3.
*** Info: However, this requires a non-privileged account called 'sshd'.
*** Info: For more info on privilege separation read /usr/share/doc/openssh/README.privsep.
*** Query: Should privilege separation be used? (yes/no) yes
*** Warning: sshd is in /etc/passwd, but the
*** Warning: local machine's SAM does not know about sshd.
*** Warning: Perhaps sshd is a pre-existing domain account.
*** Warning: Continuing, but check if this is ok.
*** Info: Updating /etc/sshd_config file
*** Query: Overwrite existing /etc/inetd.d/sshd-inetd file? (yes/no) yes
*** Info: Creating default /etc/inetd.d/sshd-inetd file
*** Info: Updated /etc/inetd.d/sshd-inetd

*** Query: Do you want to install sshd as a service?
*** Query: (Say "no" if it is already installed as a service) (yes/no) yes
*** Query: Enter the value of CYGWIN for the daemon: []
*** Info: On Windows Server 2003, Windows Vista, and above, the
*** Info: SYSTEM account cannot setuid to other users -- a capability
*** Info: sshd requires.  You need to have or to create a privileged
*** Info: account.  This script will help you do so.

*** Warning: cyg_server is in /etc/passwd, but the local
*** Warning: machine's SAM does not know about cyg_server.
*** Warning: Perhaps cyg_server is a pre-existing domain account.
*** Warning: Continuing, but check if this is ok.
*** Info: You appear to be running Windows XP 64bit, Windows 2003 Server,
*** Info: or later.  On these systems, it's not possible to use the LocalSystem
*** Info: account for services that can change the user id without an
*** Info: explicit password (such as passwordless logins [e.g. public key
*** Info: authentication] via sshd).

*** Info: If you want to enable that functionality, it's required to create
*** Info: a new account with special privileges (unless a similar account
*** Info: already exists). This account is then used to run these special
*** Info: servers.

*** Info: Note that creating a new user requires that the current account
*** Info: have Administrator privileges itself.

*** Info: The following privileged accounts were found: 'cyg_server' .

*** Info: This script plans to use 'cyg_server'.
*** Info: 'cyg_server' will only be used by registered services.
*** Query: Please enter the password for user 'cyg_server':
*** Query: Reenter:
*** Query: Please enter the password for user 'cyg_server':
*** Query: Reenter:

/usr/bin/cygrunsrv: Error installing a service: CreateService:  Win32 error 1057:
The account name is invalid or does not exist, or the password is invalid for the account name specified.

*** ERROR: Installing sshd as a service failed!

*** Warning: Host configuration exited with 1 errors or warnings!
*** Warning: Make sure that all problems reported are fixed,
*** Warning: then re-run ssh-host-config.

I tried to re-install openssh and cygrunsrv that doesn't help, still get the error.

How do I delete all config files for ssh, sshd and cygrunsrv?
How can I get ssh to install sshd as a sevice? Any ideas?
Thank's Kristjan