From ModMyi - Wiki

This guide assumes you have a jailbroken iPhone running 1.1.1 firmware. If you do not, follow this guide: Dev Team Jailbreak 1.1.1 from 1.0.2 Windows

Step 1

Download this package:

sshify1.1.1 for Windows

This is a modified (by me) version of Nate True's SSHify for Windows.

Step 2

Extract all the files to wherever and run sshify-windows.bat.

Note: When asked to reset your iPhone, make sure you wait for your iPhone to completely load up before continuing. I suggest waiting until the WiFi or Edge symbol appears on your status bar. If you want to be safe, try reseting your iPhone twice each time you are asked, especially in Phase 3.

If all goes well you should get an output similar to this:

Hello, this batch file will install and enable a SOCKS server on your iPhone.
Script authored by Nate True ( http://cre.ations.net/blog )
Mad thanks to:
- ziel (for writing Jailbreak)
- NerveGas (for compiling these programs for iPhone)
- Nightwatch (for making a working iPhone compiler) 
And the rest of the #iphone dev team.  Also thanks to the writers of srelay!

--------PHASE 1: Getting files off your iPhone---------

s_iPhoneInterface
s_Waiting for phone
s_Connection established.
e_Not jailbroken
r_command
r_command
fileref: 1
r_command
r_command
fileref: 1
r_command
        1 file(s) copied.
        1 file(s) copied.

--------PHASE 2: Uploading files and reconfiguring your iPhone---------

s_iPhoneInterface
s_Waiting for phone
s_Connection established.
e_Not jailbroken
r_command
fileref: 1
r_command
fileref: 1
r_command
fileref: 1
r_command
fileref: 1
r_command
fileref: 1
r_command
r_command
fileref: 1
r_command
fileref: 1
r_command
fileref: 1
r_command
fileref: 1
r_command
fileref: 1
r_command
r_command
fileref: 1
r_command
fileref: 1
r_command

--------PHASE 3: Restarting your iPhone---------

Press and hold the Power button on your iPhone until it shows the "slide to turn
 off" red slider.
Slide it, wait for the phone to turn off, and press the power button to turn it
on again.
Press any key to continue . . .

 --------PHASE 4: Putting init framework into place---------
 
         1 file(s) copied.
         1 file(s) copied.
 s_iPhoneInterface
s_Waiting for phone
s_Connection established.
e_Not jailbroken
r_command
fileref: 1
r_command
fileref: 0
r_command
--------PHASE 5: Restarting your iPhone, again---------

Restart your phone once more.  After that, you're done!
Press any key to continue . . .
---------DONE!--------

Step 3 (If Necessary)

If your SSHify went anything like mine, you might have noticed the very last transfer gave a fileref: 0... Oh noes! Luckily after a quick bit of digging, I found out that last file to be transfered (the one giving us the fileref:0) is /System/Library/LaunchDaemons/com.apple.update.plist. So, we're just going to go back into iPhoneInterface and put that file again! Run iphoneinterface.exe and enter the following command:

putfile /System/Library/LaunchDaemons/com.apple.update.plist

Hopefully the result looks something like this:

Note the "fileref: 1" bit.

Congratulations!

SSH should now be up and running after one more quick reset.

The next thing you will probably want to do is install BSD World. A BSD installation guide for 1.1.1 can be found here: Dev Team Install BSD World 1.1.1 Windows

Troubleshooting

If you get a "connection refused" error this might work:

Right-Click this link and select Save Link/File As. Save it to your sshkit directory.

au.asn.ucc.matt.dropbear.plist

Open up a cmd window in windows by pressing Win + R (or Start Button -> Run) and typing 'cmd', then enter.

CD to the shhkit directory (enter the command 'cd \' followed by 'cd [FULL PATH TO SSHKIT DIRECTORY]', replacing the bracketed section with the path to your sshkit directory).

Enter the command 'iphoneinterface' in the command prompt.

Now issue this command to iphoneinterface:

putfile /System/Library/LaunchDaemons/au.asn.ucc.matt.dropbear.plist

Restart the phone and then you can SCP in using winSCP.