How to run your own SFTP server under Windows
Posted by John on 2nd February 2010
Credit : Nicholas Fong, who also has many other helpful articles at his site.
For the latest version of his accumulated guide / information, please see the authentic SFTP server under Cygwin article at http://pigtail.net/LRP/printsrv/cygwin-sshd.html ) 
It worked fine for me in Windows 7 on the first shot. While I’d already been using Cygwin, the instructions were clear, though I did follow the Vista section at step 5. The version I used was dated November 18, 2009.
Good luck!
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Tags: cygwin, encryption, linux, sftp
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