that is definitely weird.
the grep command tells me ssh is using 22.
To make sure I didn't miss something I removed the port 2222 agian and left only port 22 on the server and this is what I get.
lotus@lotus-laptop:~$ grep ssh /etc/services
ssh 22/tcp # SSH Remote Login Protocol
What ever on the laptop is defaulting to 2222 must be what is causing the "connect to server" to get denied before asking for password but when I add 2222 back to sshd_config everything works fine.
lotus@lotus-laptop:~$ ssh 10.0.0.124
ssh: connect to host 10.0.0.124 port 2222: Connection refused
This is probably good anyway because I'll start specifying port 2222 on my win machine but will be trying to figure out what's going on here on my laptop with ubuntu.