You should first check to make sure if you have un-commented the credentials you provide for SSH port in the etc/users.properties file.
By default, you need to un-comment, admin/admin credentials.
You then need to make sure that SSH port in JBDS for Fuse is set to 8101 and you use the credentials as in the users.properties file.
On the 'shell' view, make sure that everything is also setup properly by looking at the 'properties' view from the 'shell'.
If this still does not work, then try changing the sshHost in the file, 'etc/org.apache.karaf.shell.cfg' to the real IP address.
Thanks Viral for your suggestions. I was struggling to get the shell going in Eclipse. Un-commenting admin/admin did the trick.