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Hacked stable system?



I am running an up-to-date stable distribution.  It looks like it may
have been hacked yesterday, but I am not sure how.  

Yesterday, I noticed that I could no longer login using ssh or telnet.
ssh logins would hang indefinitely whether I entered correct or
incorrect passwords.  Telnet logins would time-out after 60s.  I tried
different users with the same result.  However, I could ftp and imap
in.

I had the server reboot this morning (it is co-located) and seems to
be functioning fine.  Looking at /var/logs, most of the logs seem to
be empty, with .0 version having a strange ctime, e.g.

-rw-r-----    1 root     root         4432 Nov  7 15:49 auth.log
-rw-r-----    1 root     adm         43014 Jun 10 04:25 auth.log.0
-rw-r-----    1 root     root           31 Oct 28 02:26 auth.log.1.gz
-rw-r-----    1 root     root           31 Oct 21 02:27 auth.log.2.gz
-rw-r-----    1 root     root           31 Oct 14 02:26 auth.log.3.gz
-rw-r-----    1 root     root         1416 Oct  8 19:19 auth.log.4.gz

OTOH, Jun 10th is around the time this system was set up, so perhaps
these logs somehow got excluded from the rotation.  Apache logs are
intact.  I see no other sings of break-in.  Also, unfortunately, I
don't know if fsck printed out any messages for /var/ filesystem when
the system was rebooted.

/etc/passwd seems intact

So, what could have caused ssh/telnet to hang like this while ftp
worked fine?  What else should I check for break-in signs?  I am
thinking I should reinstall the system from scratch.  However, same
exploit could be used again.

Gleb

PS I'll include current ps aux:
USER       PID %CPU %MEM   VSZ  RSS TTY      STAT START   TIME COMMAND
root         1  0.0  0.3  1020  460 ?        S    08:22   0:04 init [2]
root         2  0.0  0.0     0    0 ?        SW   08:22   0:00 [kflushd]
root         3  0.0  0.0     0    0 ?        SW   08:22   0:01 [kupdate]
root         4  0.0  0.0     0    0 ?        SW   08:22   0:01 [kswapd]
root         5  0.0  0.0     0    0 ?        SW   08:22   0:00 [keventd]
daemon      92  0.0  0.3  1132  492 ?        S    08:23   0:00 /sbin/portmap
root       157  0.0  0.4  1204  560 ?        S    08:23   0:01 /sbin/syslog-ng
root       159  0.0  0.6  1424  844 ?        S    08:23   0:00 /sbin/klogd
root       163  0.0  0.8  1056 1056 ?        SL   08:23   0:00 /usr/sbin/watchdog
root       169  0.0  0.5  1148  644 ?        S    08:23   0:00 /sbin/rpc.statd
root       174  0.0  0.2  1024  332 ?        S    08:23   0:00 svscan
daemon     175  0.0  0.2  1000  296 ?        S    08:23   0:00 multilog t /var/log/svscan
root       178  0.0  0.2   988  304 ?        S    08:23   0:00 supervise dnscache
root       179  0.0  0.2   988  304 ?        S    08:23   0:00 supervise log
root       180  0.0  0.2   988  304 ?        S    08:23   0:00 supervise tinydns
root       181  0.0  0.2   988  304 ?        S    08:23   0:00 supervise log
dnscache   184  0.0  1.0  2296 1380 ?        S    08:23   0:01 /usr/bin/dnscache
dnslog     185  0.0  0.2  1004  348 ?        S    08:23   0:00 multilog t ./main
tinydns    186  0.0  0.2  1108  344 ?        S    08:23   0:00 /usr/bin/tinydns
root       187  0.0  0.2   988  304 ?        S    08:23   0:00 supervise axfrdns
root       188  0.0  0.2   988  304 ?        S    08:23   0:00 supervise log
dnslog     189  0.0  0.2  1000  300 ?        S    08:23   0:00 multilog t ./main
root       190  0.0  0.3  1072  420 ?        S    08:23   0:00 tcpserver -hvDrl0 -x tcp.cdb -- 208.47.211.42 53 /usr/bin/axfrdns
dnslog     192  0.0  0.2  1000  300 ?        S    08:23   0:00 multilog t ./main
root       193  0.0  0.4  1300  552 ?        S    08:23   0:00 /usr/sbin/inetd
root       201  0.0  0.4  1352  560 ?        S    08:23   0:00 /usr/sbin/lpd
root       209  0.0  0.6  1740  828 ?        S    08:23   0:00 sh /usr/bin/safe_mysqld
mysql      222  0.0  1.2 19172 1536 ?        S    08:23   0:00 /usr/sbin/mysqld --pid-file=/var/run/mysqld/mysqld.pid
mysql      224  0.0  1.2 19172 1536 ?        S    08:23   0:00 /usr/sbin/mysqld --pid-file=/var/run/mysqld/mysqld.pid
mysql      225  0.0  1.2 19172 1536 ?        S    08:23   0:00 /usr/sbin/mysqld --pid-file=/var/run/mysqld/mysqld.pid
qmails     232  0.2  0.2  1044  380 ?        S    08:23   1:01 qmail-send
perforce   234  0.0  0.4  2032  564 ?        S    08:23   0:00 /usr/sbin/p4d
qmaill     236  0.0  0.3  1012  404 ?        S    08:23   0:00 splogger qmail
root       237  0.0  0.2  1000  324 ?        S    08:23   0:00 qmail-lspawn |/usr/sbin/qmail-procmail
qmailr     238  0.0  0.2  1000  328 ?        S    08:23   0:00 qmail-rspawn
qmailq     239  0.0  0.2   992  336 ?        S    08:23   0:00 qmail-clean
qmaild     241  0.0  0.4  1376  580 ?        S    08:23   0:00 /usr/bin/tcpserver -u 64011 -g 65534 -x /etc/tcp.smtp.cdb 0 smtp /usr/sbin/rblsmtpd -rblackholes.mail-abuse.org /usr/sbin/rblsmtpd -rdialups.mail-abuse.org /usr/sbin/rblsmtpd -rrelays.mail-abuse.org /usr/sbin/qmail-smtpd
root       242  0.0  0.2  1000  276 ?        S    08:23   0:00 splogger qmail -t qmail -p mail.notice
root       245  0.0  0.7  1596  956 ?        S    08:23   0:05 /usr/sbin/snort -D -S HOME_NET 208.47.211.42/32 -h 208.47.211.42/32 -c /etc/snort/snort-lib -l /var/log/snort/ -s -b -i eth0
root       253  0.0  0.7  2240  932 ?        S    08:23   0:05 /usr/sbin/sshd
nobody     256  0.0  2.0  3616 2596 ?        S    08:23   0:00 /usr/bin/X11/xfs-xtt -user nobody
root       260  0.0  1.2  1556 1548 ?        SL   08:23   0:00 /usr/sbin/ntpd
daemon     265  0.0  0.4  1140  544 ?        S    08:23   0:00 /usr/sbin/atd
root       268  0.0  0.4  1168  616 ?        S    08:23   0:00 /usr/sbin/cron
root       273  0.0  2.8 39328 3644 ?        S    08:23   0:01 /usr/sbin/apache
root       276  0.0  0.3  1004  440 tty1     S    08:23   0:00 /sbin/getty 38400 tty1
root       277  0.0  0.3  1004  440 tty2     S    08:23   0:00 /sbin/getty 38400 tty2
root       278  0.0  0.3  1004  440 tty3     S    08:23   0:00 /sbin/getty 38400 tty3
root       279  0.0  0.3  1004  440 tty4     S    08:23   0:00 /sbin/getty 38400 tty4
root       280  0.0  0.3  1004  440 tty5     S    08:23   0:00 /sbin/getty 38400 tty5
root       281  0.0  0.3  1004  440 tty6     S    08:23   0:00 /sbin/getty 38400 tty6
www-data   282  0.0  2.9 39368 3776 ?        S    08:23   0:00 /usr/sbin/apache
www-data   283  0.0  2.8 39328 3652 ?        S    08:23   0:00 /usr/sbin/apache
www-data   284  0.0  2.8 39328 3652 ?        S    08:23   0:00 /usr/sbin/apache
www-data   285  0.0  2.9 39368 3776 ?        S    08:23   0:00 /usr/sbin/apache
www-data   286  0.0  2.8 39328 3652 ?        S    08:23   0:00 /usr/sbin/apache
www-data  1176  0.0  2.8 39328 3656 ?        S    09:40   0:00 /usr/sbin/apache
alexg     1991  0.0  1.1  2332 1432 ?        S    10:29   0:01 SCREEN
alexg     1992  0.0  1.0  2244 1360 pts/2    S    10:29   0:00 /usr/bin/zsh
alexg     1998  0.1  8.9 14256 11440 pts/2   S    10:29   0:23 xemacs
alexg     2041  0.0  1.2  2432 1568 pts/4    S    10:32   0:00 /usr/bin/zsh
root      2079  0.0  1.2  2424 1568 pts/4    S    10:34   0:00 zsh
alexg     2258  0.0  1.0  2244 1368 pts/3    S    10:39   0:00 /usr/bin/zsh
root      2434  0.0  0.4  1328  616 pts/4    S    10:43   0:00 less mail.log.1.gz
root      3793  0.0  1.1  2896 1492 ?        S    12:24   0:09 /usr/sbin/sshd
gleb      3795  0.0  0.9  2000 1204 pts/0    S    12:24   0:00 -bash
gleb      3804  0.0  0.4  1220  632 pts/0    S    12:24   0:00 newmail /home/gleb/Mail/new/default
gleb      4431  0.0  0.6  1880  776 pts/0    S    13:18   0:00 screen -e^}]
gleb      4432  0.2  0.9  2100 1188 ?        S    13:18   0:26 SCREEN -e^}]
gleb      4433  0.0  0.9  1992 1204 pts/1    S    13:18   0:00 /bin/bash
gleb      4436  0.8 12.2 18384 15568 pts/1   S    13:18   1:27 xemacs
gleb      5407  0.0  0.9  2012 1232 pts/5    S    14:05   0:00 /bin/bash
gleb      5414  0.0  0.9  1992 1208 pts/6    S    14:05   0:00 /bin/bash
gleb      5417  2.4  1.0  2076 1316 pts/6    S    14:05   3:01 top
gleb      8324  0.0  0.9  2032 1252 pts/8    S    14:12   0:01 /bin/bash
gleb     11003  0.0  0.9  2008 1228 pts/7    S    15:53   0:00 /bin/bash
gleb     11099  1.6  1.3  3588 1672 ?        S    15:59   0:09 imapd
gleb     11277  0.5  0.9  1996 1212 pts/9    S    16:08   0:00 /bin/bash
gleb     11282  0.0  0.9  2916 1204 pts/9    R    16:08   0:00 ps aux



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