You are correct the fix I implemented was a work around but at the same
time I had no need for reverse DSN lookup.

At any rate 
I made the requested changes to  /etc/nsswitch.conf
hosts: files dns

I also commented out the following lines in /etc/ssh/sshd_config
LoginGraceTime 20
useDNS no

This corrected my problem, it would seem based on your description however that 
my problem was really a symptom of the problem.
There is now a slight pause (approx 3-4 sec) after the password  is entered 
before ssh displays /etc/motd, is this due to the system checking what is 
specified in the hosts: files dns line in /etc/nsswitch.conf

Thanks again for the help.

(looking back on it I specified the LoginGraceTime value based on a
Debian system hardening website/walk through ....thoughts?)

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(bash) ssh to other systems fails to connect
https://bugs.launchpad.net/bugs/84849
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