sshd: Failed password for invalid user xander
This even though the same account xander worked fine for other OEL servers.
When we used the su xander from the root account on the OEL server we were able to create the directory:
$ su xander
Creating directory '/home/xander'.
Creating directory '/home/xander/.kde'.
Creating directory '/home/xander/.kde/Autostart'.
It turned out that this specific machine had an extra access policy in the /etc/security/access.conf file. This policy only let users access the machine through SSH when they were member of a group.
When we added the same group to the OID and added the username to the group, the password error was gone and we were able login using SSH