Selective blocking of password authentication

[David Grimes]

I'm running OpenSSH 3.4 and have the situation that some users want to 
allow password authentication into their accounts and some explicitly
want to disallow password authentication. Is this possible? I wasn't 
able to come up with a way looking through ssh_config and sshd_config,
as well as some FAQs. 

It seems the problem is that there is no scoping of directives in sshd_config,
thus PasswordAuthentication is global for all users. Alternatively it seems
like sshd should be able to check some file ~/.ssh/sshd_config for such an
option.

Any help would be greatly appreciated.

Thanks,
-David Grimes <grimes _at_ cs.washington.edu>