Problem using sftp

[JMelsoner]

I have ssh2.0 installed and can connect to the remote system via ssh but I cannot get scp or sftp to work, scp uses sftp as an underlying protocall

here is a debug of the session

a successful ssh session

/home/melsonj1>ssh -v melsonj1@172.30.15.27
debug: hostname is '172.30.15.27'.
debug: Unable to open /home/melsonj1/.ssh2/ssh2_config
debug: connecting to 172.30.15.27...
debug: entering event loop
debug: ssh_client_wrap: creating transport protocol
debug: SshAuthMethodClient/sshauthmethodc.c:117: Added "publickey" to usable methods.
debug: SshAuthMethodClient/sshauthmethodc.c:117: Added "password" to usable methods.
debug: Ssh2Client/sshclient.c:1142: creating userauth protocol
debug: Ssh2Common/sshcommon.c:502: local ip = 172.30.4.138, local port = 33008
debug: Ssh2Common/sshcommon.c:504: remote ip = 172.30.15.27, remote port = 22
debug: SshConnection/sshconn.c:1866: Wrapping...
debug: Ssh2Transport/trcommon.c:599: Remote version: SSH-2.0-2.4.0 SSH Secure Shell Windows NT Server Evaluation (Expires Wed Jul 04 2001)
debug: Ssh2Transport/trcommon.c:1120: c_to_s: cipher 3des-cbc, mac hmac-sha1, compression none
debug: Ssh2Transport/trcommon.c:1123: s_to_c: cipher 3des-cbc, mac hmac-sha1, compression none
debug: Ssh2Client/sshclient.c:406: Host key found from database.
debug: Ssh2Common/sshcommon.c:306: Received SSH_CROSS_STARTUP packet from connection protocol.
debug: Ssh2Common/sshcommon.c:356: Received SSH_CROSS_ALGORITHMS packet from connection protocol.
This is an evaluation version of the SSH Secure Shell Windows Server.
The evaluation version expires on Wed Jul 04 2001)

debug: Ssh2AuthPasswdClient/authc-passwd.c:92: Starting password query...
melsonj1's password:
debug: Ssh2Common/sshcommon.c:274: Received SSH_CROSS_AUTHENTICATED packet from connection protocol.
Authentication successful.
debug: Ssh2Common/sshcommon.c:704: num_channels now 1
debug: Requesting X11 forwarding with authentication spoofing.
debug: Failed to get local xauth data.
Microsoft(R) Windows NT(TM)
(C) Copyright 1985-1996 Microsoft Corp.

C:\WINNT\Profiles\melsonj1>

A unsuccessful scp session

/home/melsonj1>scp -prv melsonj1@172.30.15.27#22:Windows.rc Windows.rc
scp:Scp2/scp2.c:483: Received error "SSH_FC_OK"., msg: Globbing successful.
scp:Scp2/scp2.c:560: Starting recursion...
scp:files in file list:
scp:Windows.rc
scp:SshFCRecurse/sshfc_recurse.c:146: Not yet connected, or connection down, waiting...
scp:SshFileCopy/sshfilecopy.c:929: Connecting to remote host. (host = 172.30.15.27, user = melsonj1, port = 22)
scp:Scp2/scp2.c:1649: argv[0] = ssh2
scp:Scp2/scp2.c:1649: argv[1] = -l
scp:Scp2/scp2.c:1649: argv[2] = melsonj1
scp:Scp2/scp2.c:1649: argv[3] = -p
scp:Scp2/scp2.c:1649: argv[4] = 22
scp:Scp2/scp2.c:1649: argv[5] = -v
scp:Scp2/scp2.c:1649: argv[6] = -x
scp:Scp2/scp2.c:1649: argv[7] = -a
scp:Scp2/scp2.c:1649: argv[8] = -o
scp:Scp2/scp2.c:1649: argv[9] = clearallforwardings yes
scp:Scp2/scp2.c:1649: argv[10] = -o
scp:Scp2/scp2.c:1649: argv[11] = passwordprompt %U@%H's password:
scp:Scp2/scp2.c:1649: argv[12] = -o
scp:Scp2/scp2.c:1649: argv[13] = nodelay yes
scp:Scp2/scp2.c:1649: argv[14] = -o
scp:Scp2/scp2.c:1649: argv[15] = authenticationnotify yes
scp:Scp2/scp2.c:1649: argv[16] = 172.30.15.27
scp:Scp2/scp2.c:1649: argv[17] = -s
scp:Scp2/scp2.c:1649: argv[18] = sftp
Executing ssh2 failed. Command:' ssh2 -l melsonj1 -p 22 -v -x -a -o clearallforwardings yes -o passwordprompt %U@%H's password: -o nodelay yes -o authentication
notify yes 172.30.15.27 -s sftp' System error message: 'Permission denied'
scp:Scp2/scp2.c:1443: notification: 0
scp:Scp2/scp2.c:1443: notification: 0
scp:Scp2/scp2.c:1443: notification: 1
scp:ssh_sigchld_real_callback
scp:ssh_sigchld_process_pid: calling handler pid 16594 code 255
scp: warning: child process (ssh2) exited with code 255.
/home/melsonj1>

any help here would be greatly apprieciated