Can't sftp into my machine but ssh works

[Dave Martini 1]

I'm trying to sftp into my RHEL WS 3 machine.
I can ssh in just fine. But when I 

sftp martini1 at machine

martini1 at machine's password: 
debug3: packet_send2: adding 48 (len 61 padlen 19 extra_pad 64)
debug2: we sent a password packet, wait for reply
debug1: Authentications that can continue: 
publickey,password,keyboard-interactive
Permission denied, please try again.
martini1 at machine's password: 

The above Permission denied error tells me that my password
I typed in was correct but the machine is not granting me permission
to sftp in is that correct?

The sftp password is the same as the UNIX password but is 
there some other access list for sftp connections because
this used to work.

Thank You
Dave Martini
LLNL