You don't need to do it your way. When creating an Automator Service the paths of the selected items are given to the service automatically.
All you need to do is to select "Files & Folders" in the Menu at the top (in your screenshot you selected "no input").
After that you don't need to use Automator variables, all paths can be found as a list inside the input parameter.
After that you should build your shell command like an ordinary string and execute it via do shell script.
Try this to get started, I filled it up with helpful comments for you:
on run {input, parameters}
-- setting your AppleScript variables
set input01 to "scp -i /Users/jeffArries/Desktop/jeffarries.pem -rp /Users/jeffArries/Desktop/Website_Testing_Folder/"
set input02 to "[email protected]:/var/www/html"
-- loop through selected finder items
repeat with aFinderItem in input
-- check if the aFinderItem is a file and not anything else
tell application "System Events" to set theItemIsAFile to ((get class of item (aFinderItem as text)) = file)
if theItemIsAFile then
-- store the POSIX path of the file
set theItemsPosixPath to POSIX path of aFinderItem
-- build the shell scp command
set myShellCommand to input01 & " " & quoted form of theItemsPosixPath & " " & input02
-- exceute the command
do shell script myShellCommand
end if
end repeat
return input
end run
Enjoy, Michael / Hamburg