I have been poking around at this for a few hours now.
I have recompiled dropbear for arm and im trying to see if I can get it to work on here, but the problem is I cant find anything to change ownership of a file!
From looking at the other files in /system/bin that are executable in shell, it looks like they need to be root:shell. I put the dropbear binary on my sdcard (which is locked down with masks and a noexec flag. I am going to try remounting it). I copied dropbear from the sdcard to /system/bin and it automatically changes the permissions to root:root and read only for root. I chmod'd it to 4777, but its still root:root (obviousy) and I keep getting permission denied