Dan Lund wrote:
> The verbose debugging says it negotiates as ssh2 between each other,
> reads the files, even finds the id_rsa file but then it says "we sent
> a publickey packet, waiting for reply" and then "we did not send a
> packet, disable method".
> my ssh_config is essentially empty (stock, bare, empty) and the
> sshd_config on the remote host is the same.

Try setting these in sshd_config:

RSAAuthentication yes
PubkeyAuthentication yes
AuthorizedKeysFile     %h/.ssh/authorized_keys

~Ben

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