Description of problem:
On F16, systemd report the sshd.service as failing.
When running the binary manually with:
The error is output is
Missing privilege separation directory: /var/empty/sshd
Version-Release number of selected component (if applicable):
Steps to Reproduce:
1. Try to start the sshd.service with systemctl
the service is failing
the service should work.
Creating the /var/empty/sshd directory allow the daemon to run.
Note that the package itself is OK. The problem is you had a broken openssh package installed before and you've upgraded from it. As the manual workaround is simple and the problem existed only in pre-alpha packages AFAIK I think it is fine to not introduce any automatic kludges/workarounds into the package.
*** This bug has been marked as a duplicate of bug 725137 ***