When upgrading to OpenSSH 3.4p1 from the ports collection (using Makefile 1.48 and OPENSSH_OVERWRITE_BASE=yes), sshd hangs when trying to do a lookup of the connecting IP. After about a minute, the password prompt appears and an ssh connection is successfully established.

sshd -ddd output as follows:
debug1: sshd version OpenSSH_3.4p1
debug3: Not a RSA1 key file /etc/ssh/ssh_host_dsa_key.
debug1: read PEM private key done: type DSA
debug1: private host key: #0 type 2 DSA
debug1: Bind to port 22 on ::.
Server listening on :: port 22.
<snip>
debug1: waiting for SSH2_MSG_NEWKEYS
debug1: newkeys: mode 0
debug1: SSH2_MSG_NEWKEYS received
debug1: KEX done
debug3: Trying to reverse map address xx.xx.xx.xx.
<hangs for a minute here>
Could not reverse map address xx.xx.xx.xx.
debug1: userauth-request for user blah service ssh-connection method none
debug1: attempt 0 failures 0
debug3: mm_getpwnamallow entering
<snip>

daemon still works correctly, but the wait is an annoyance.  Furthermore, nslookup successfully resolves the IP in question, so even though sshd is ignoring "VerifyReverseMapping no" (full sshd_config pasted in 'how to repeat') it should not fail.

This problem did NOT occur on a second system when using the same OpenSSH port:
FreeBSD foo2.org 4.6-RC FreeBSD 4.6-RC #0: Fri May 31 00:44:30 EDT 2002     jestrix@jestrix.net:/usr/obj/usr/src/sys/JESTRIX  i386

Fix: 

Set "UsePrivilegeSeperation no" in sshd_config
How-To-Repeat: Repeated on a second 4.5-RELEASE system by installing the new OpenSSH port and using the following sshd_config:

#       $OpenBSD: sshd_config,v 1.56 2002/06/20 23:37:12 markus Exp $

# This is the sshd server system-wide configuration file.  See
# sshd_config(5) for more information.

# This sshd was compiled with PATH=

# The strategy used for options in the default sshd_config shipped with
# OpenSSH is to specify options with their default value where
# possible, but leave them commented.  Uncommented options change a
# default value.

Port 22
Protocol 2
#ListenAddress ::

# HostKey for protocol version 1
#HostKey /etc/ssh/ssh_host_key
# HostKeys for protocol version 2
#HostKey /etc/ssh/ssh_host_rsa_key
HostKey /etc/ssh/ssh_host_dsa_key

# Lifetime and size of ephemeral version 1 server key
#KeyRegenerationInterval 3600
#ServerKeyBits 768

# Logging
#obsoletes QuietMode and FascistLogging
#SyslogFacility AUTH
#LogLevel INFO

# Authentication:

#LoginGraceTime 600
PermitRootLogin no
StrictModes yes

#RSAAuthentication no
#PubkeyAuthentication no
#AuthorizedKeysFile     .ssh/authorized_keys

# rhosts authentication should not be used
RhostsAuthentication no
# Don't read the user's ~/.rhosts and ~/.shosts files
IgnoreRhosts yes
# For this to work you will also need host keys in /etc/ssh/ssh_known_hosts
RhostsRSAAuthentication no
# similar for protocol version 2
HostbasedAuthentication no
# Change to yes if you don't trust ~/.ssh/known_hosts for
# RhostsRSAAuthentication and HostbasedAuthentication
IgnoreUserKnownHosts yes

# To disable tunneled clear text passwords, change to no here!
PasswordAuthentication yes
PermitEmptyPasswords no

# Change to no to disable s/key passwords
ChallengeResponseAuthentication no

# Kerberos options
#KerberosAuthentication no
#KerberosOrLocalPasswd yes
#KerberosTicketCleanup yes

#AFSTokenPassing no

# Kerberos TGT Passing only works with the AFS kaserver
#KerberosTgtPassing no

# Set this to 'yes' to enable PAM keyboard-interactive authentication 
# Warning: enabling this may bypass the setting of 'PasswordAuthentication'
#PAMAuthenticationViaKbdInt yes

X11Forwarding no
#X11DisplayOffset 10
#X11UseLocalhost yes
#PrintMotd yes
#PrintLastLog yes
#KeepAlive yes
UseLogin no
UsePrivilegeSeparation yes
Compression no

#MaxStartups 10
# no default banner path
#Banner /some/path
VerifyReverseMapping no

# override default of no subsystems
Subsystem       sftp    /usr/libexec/sftp-server