You're entering the correct password? You installed openssh-server, not dropbear right? If you installed openssh, it should have asked you to set the password.

sshing in as user won't work; user has no password (although, I believe, for OpenSSH, you can edit sshd.conf to allow login to accounts with empty passwords). You can set one but I usually "su - user" after sshing in as root.

If you need to set the root password, install rootsh from application manager; run "root" and run "passwd".