Running the start init.d script
sudo /etc/init.d/ssh start
showed me this error "start: Unknown job: ssh"
Searching for an answer lead me to this ubuntuforums.org post and this stackoverflow post. None of those solutions worked, however they helped me in a way to solve this problem.
Xubuntu Live CD doesn't have ssh server installed by default. I installed the ssh client and server:
sudo apt-get install ssh openssh-server -y
and I tried to start it when it gave me the error.
By running the ssh server manually
showed me this error "Missing priviledge separation directory: /var/run/sshd"
By creating this directory, the problem was solved:
sudo mkdir /var/run/sshd
Now, I can simply run
and the ssh server works