Vanilla F8 install, selinux-policy-targeted-3.0.8-47.fc8 The avc monitoring thingy pops up to tell me that sshd was prevented from accessing files in my home directory. It looks for ~/.hushlogin, ~/.ssh/rc, and some others. Finding these files is necessary for proper operation of sshd. They are normal user files and so have the standard user_home_t type and can't be expected to have any other in targeted policy where normal users never think about SELinux for their own files.
Fixed in selinux-policy-3.0.8-54.fc8
Bulk closing all bugs in Fedora updates in the modified state. If you bug is not fixed, please reopen.