You are using a tool (telnet) that doesn't know a thing about the SSH
protocol, so the server answers correctly stating that there is a
"Protocol mismatch". The only thing you can say with your test is that
the SSH server is alive.
To troubleshoot your problem, try connecting first from localhost using
"-vv" with the OpenSSH client. then try from a remote machine. Watch for
error messages in your system logs.
--
Saad Kadhi
"He who relieves the poor makes Ahura king"