I upgraded my openssh to 5.0. Now I need to modify the sshd_config file to my company's new policy. My problem? There are two config file on my system:
Typically you would edit /etc/ssh/sshd_config for OpenSSH configuration. Even the OpenSSH page lists the man page for sshd_config which confirms this is the default location, Manual Pages: sshd_config(5)
On our AIX systems where we have commercial and OpenSSH, I don't see the /usr/local/etc/sshd_config so I am not sure how you got that. It could be from a prior installation and someone configured it to reside there since /usr/local/etc/ is a common dumping ground for such things.