chroot not working on openssh 6.2 - sftp

Question

I'm trying to get some chrooting in place for PCI compliance. I'd like a few users to only be able to connect via sftp and not ftp (which I can easily restrict). However I need the sftp users to be chrooted so they can traverse up the dir tree and see everything.
I added this to my openssh ssd_config file to test on one user first:
Match User dbl
ChrootDirectory %h
AllowTCPForwarding no
X11Forwarding no
ForceCommand internal-sftp
When I try to connect I get this output:
$ sftp -v dbl#hostname
OpenSSH_5.9p1, OpenSSL 0.9.8x 10 May 2012
debug1: Reading configuration data /etc/ssh_config
debug1: /etc/ssh_config line 20: Applying options for *
debug1: /etc/ssh_config line 53: Applying options for *
debug1: Connecting to hostname [x.x.x.x] port 22.
debug1: Connection established.
debug1: identity file /Users/me/.ssh/id_rsa type 1
debug1: identity file /Users/me/.ssh/id_rsa-cert type -1
debug1: identity file /Users/me/.ssh/id_dsa type -1
debug1: identity file /Users/me/.ssh/id_dsa-cert type -1
debug1: Remote protocol version 2.0, remote software version OpenSSH_6.2p2-hpn13v14 FreeBSD-openssh-portable-6.2.p2_2,1
debug1: match: OpenSSH_6.2p2-hpn13v14 FreeBSD-openssh-portable-6.2.p2_2,1 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_5.9
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: server->client aes128-ctr hmac-md5 none
debug1: kex: client->server aes128-ctr hmac-md5 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST(1024<1024<8192) sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
debug1: Server host key: RSA 54:8b:66:39:15:d4:6f:ed:82:d4:c2:82:b0:a3:45:03
debug1: Host 'hostname' is known and matches the RSA host key.
debug1: Found key in /Users/me/.ssh/known_hosts:35
debug1: ssh_rsa_verify: signature correct
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: SSH2_MSG_NEWKEYS received
debug1: Roaming not allowed by server
debug1: SSH2_MSG_SERVICE_REQUEST sent
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug1: Authentications that can continue: publickey,password
debug1: Next authentication method: publickey
debug1: Offering RSA public key: /Users/me/.ssh/id_rsa
debug1: Authentications that can continue: publickey,password
debug1: Trying private key: /Users/me/.ssh/id_dsa
debug1: Next authentication method: password
dbl#hostname's password:
debug1: Authentication succeeded (password).
Authenticated to hostname ([x.x.x.x]:22).
debug1: channel 0: new [client-session]
debug1: Requesting no-more-sessions#openssh.com
debug1: Entering interactive session.
debug1: channel 0: free: client-session, nchannels 1
debug1: fd 0 clearing O_NONBLOCK
Connection to hostname closed by remote host.
Transferred: sent 1920, received 2560 bytes, in 0.0 seconds
Bytes per second: sent 1111840.9, received 1482454.5
debug1: Exit status -1
Connection closed
As you can see, right after I type in the password it lets me in then immediately closes the connection. It doesn't even bring up the sftp prompt like it should. I've tried a few other posts on here that seem related but haven't gotten anywhere.
Each user has /bin/sh as their shell.

Answer 1

I've seen a bunch of similar issues people have had with SFTP in the past and most of the time it was solved by adding the top line that's missing to your sshd_config
Subsystem sftp internal-sftp
Match Group sftponly
ChrootDirectory /home/%u
ForceCommand internal-sftp
AllowTcpForwarding no
Also if you plan to add a few more users it'd probably wise to set up an sftp group like my config below.
I put a blog post up a bit back, it's for openssh-5 however. Also contains a dirty but effective interactive script to set up a new user in seconds.. use it all the time for work when a new client comes on board.
http://264nmtechblog.wordpress.com/2013/10/
Hope this is some help - if not maybe post your /var/log/secure which might give you a better heads up if your problem is permission based.