Description of problem:
On F16, systemd report the sshd.service as failing.
When running the binary manually with:
/usr/sbin/sshd -D
The error is output is 
Missing privilege separation directory: /var/empty/sshd

Version-Release number of selected component (if applicable):
openssh-5.8p2-16.fc16.1

How reproducible:
always

Steps to Reproduce:
1. Try to start the sshd.service with systemctl
  
Actual results:
the service is failing

Expected results:
the service should work.

Additional info:
Creating the /var/empty/sshd directory allow the daemon to run.