Let me get this straight:

You used Putty (e.g. a SSH Client like the one coming with Cygwin, just better) to access a remote server,
then tried to start SSHD (which was already running) - which failed, propably because someone misconfigured it.

1.) There was no need to start sshd, since it was already running. Just starting it should have failed with that message, and
everything would have been fine. You should have known that, since you used Putty to access the server.

2.) You either stopped sshd, or restarted an already misconfigured sshd - no other way to explain your problems.

3.) No one told you to do the above, there's nothing in the Howto describing *how* to start/stop or configure SSHD anyway ..

Learn about Server administration before you begin to start or stop ssh services. Seems as if you didn't even know that
Putty is actually an SSH Client.

I can't see anything in the Howto which tells you to start or stop your sshd on the remote machine. It actually only tells
you to start a SSH client session, which, in fact can't break anything unless you do it, a few thousand times per second.

And stop giving the people at Nusphere the blame for your incompetence when it comes to this. After all this is a tool for Developers.
Remote debugging through SSH is pretty much a very advanced feature.