expandrive not connecting to freesshd

I needed to have ssh access to windows servers because (beta) ftp connection is too slow. I installed freesshd on my local test windows 2003 server. It seems to work correctly and I can get standard ssh connections from a terminal, and sftp connections using filezilla, however connection using ExpanDrive hangs on yellow light. I am running ExpanDrive 1.3.3, and freesshd 1.2.1 . The freesshd log shows that my user connected via SSH, and that the SFTP service was granted, yet ExpanDrive stays in 'yellow' status.