I am trying to connect to a CentOs 7 box with PHPED. I cann connect fine through the terminal to this server in PHPED. But when I setup Sftp, it just hangs. Just using for the most part default settings.

Any thoughts would be appreciated.

Thanks

If you post your server-side logs and account settings, including SSH Defaults settings on the Keys tab, it would be clearer what you're doing and why it does not proceed with SFTP.

My server side logs simply say
sshd[30636]: Did not receive identification string from <my ip address>

PHPED Settings:
host: my srv ip
port: 50000 <my ssh port if 50000, I set server to 22 for debug and it still generated same problem>
root: /
time: ofset 0
Passive checked
ssl (ftps) checked
SSL Settings SSL defaults
TLS Mode Checked
encryped data not checked
Fall back not checked
socks not checked
use cache not checked
authentication: usual stuff name / password

The keys settins
SSL v2/3
Certs and authorites are those generated by PHPED I did not mess with those (I did not mess with keys at all)
Verify peer not checked

One last thought on this, I have no other problems with SFTP from filezilla or free SFTP net drive (which I had to install since PHPed sftp feature is not working on my end)

you setup ftp account, not sftp.