From LQWiki

I've just finished setting up a chroot environment for OpenSSH, so I'll contribute my experience.

I used a patch from the Sourceforge chrootssh project mentioned above. I used this guide to help: http://www.brandonhutchinson.com/chroot_ssh.html. These instructions made it pretty easy to get this running. This solution is also a bit easier than some of the other solutions I found on the net (e.g. the "scponly" package). Just a simple patch to the OpenSSH source tree, and away you go. ;)