I was able to SSH to my iPhone using Terminal and Cyber Duck FTP program. But it suddenly stops. Now all I get is the message "openning SSH connection to user@hostname" and "connection time out" after a while. What could be wrong here, my WIFI is on, iPhone is on, IP address is right.

I still can SSH to my Mac using iPhone Terminal

The Terminal.app that is used on the iPhone is not SSH. It is simply opening up a console. If you are going to the locked screen then the phone will turn off WiFi to save battery. You need to turn off the Auto-Lock feature and make sure you are in the SpringBoard.

What program are you using to SSH to the iPhone (from PC) ... WinSCP, PuTTY?? It may help for us to diagnose the problem.

I figured out how to fix the problem but still don't understand why. I think the iPhone has something wrong with the IP settings. In the settings panel, it says the IP address is 192.168.1.5 , but when I try to connect to 192.168.1.5 , it can't open the connection. But 192.168.1.7 works!!!!!!! What the F ???

By the way, I used Cyber Duck as my FTP client.