Git SSH setup Permission denied (publickey)

I'm using a VWWare image of Ubuntu 8.04 and experiencing problems while setting up git access over SSH

I get the following output

debug1: Authentications that can continue: publickey
debug1: Next authentication method: publickey
debug1: Offering public key: 
debug1: Authentications that can continue: publickey
debug1: Offering public key: 
debug1: Authentications that can continue: publickey
debug1: Offering public key: 
debug1: Authentications that can continue: publickey
debug1: Offering public key: 
debug1: Authentications that can continue: publickey
debug1: Trying private key: /home/jars/.ssh/identity
debug1: PEM_read_PrivateKey failed
debug1: read PEM private key done: type <unknown>
Enter passphrase for key '/home/jars/.ssh/identity': 
debug1: read PEM private key done: type RSA
debug1: Authentications that can continue: publickey
debug1: No more authentication methods to try.
Permission denied (publickey).

I have generated the keys with ssh-keygen -t rsa

and renamed them to identity (private) and ida_rsa (public), because initially they wheren't found by ssh开发者_StackOverflow中文版.

I also created a config file as depicted here...

http://help.github.com/troubleshooting-ssh/

Nothing changed.

Am I missing something or is there generally something wrong with using SSH in VMWare?

Regards

---

Check your permissions on your .ssh directory on the local and remote sides:

drwx------ 3 xxx xxx 216 10-04 12:30 .ssh/
-rw------- 1 xxx xxx  745 06-19 12:37 authorized_keys
-rw------- 1 xxx xxx  783 05-08 22:15 config
-rw------- 1 xxx xxx 3.3K 2009-02-21  id_rsa
-rw------- 1 xxx xxx  745 2009-03-06  id_rsa.pub
-rw-r--r-- 1 xxx xxx  53K 09-27 15:51 known_hosts

If that doesn't work, run the SSH server from the command line in debug mode. It may give you more information why it is rejecting the login.

sudo /usr/sbin/sshd -Dd