Error When Installing OpenSSH 3.4

I'm trying to install OpenSSH 3.4 over 2.9 to protect my server from the vulnerabilities in older versions of the software and I cannot get past this error:

/usr/local/etc/ssh_host_key already exists, skipping.
/usr/local/etc/ssh_host_dsa_key already exists, skipping.
/usr/local/etc/ssh_host_rsa_key already exists, skipping.
id sshd || \
echo "WARNING: Privilege separation user \"sshd\" does not exist"
uid=509(sshd) gid=2003(sshd) groups=2003(sshd)


I've searched many forums and google and have found others who received this same error but I can't get past it. I have tried this:

mkdir /var/empty
chown root:sys /var/empty
chmod 755 /var/empty
groupadd sshd
useradd -g sshd -c 'sshd privsep' -d /var/empty -s /bin/false sshd

and the error still comes up. It even shows it is finding the user and group so why does it say it doesn't exist?

I am running Red Hat 7.2 on my dedicated server and am trying to compile the source version.

Hi.

I've had the same problem with trying to configure/make/make install the source code. Go to rhn.redhat.com/errata/RHSA-2002-127.html and get the RPM. It rocks.