Amazon EC2 linux user accounts [migrated]

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http://stackoverflow.com – I have a Linux AMI setup on EC2. The default user is ec2-user. I created a second user account on the instance. I copied the .ssh/authorized_keys file from ec2-user home directory to the new user's home directory. Set the privs on .ssh/ to 700 and on authorized_keys to 600. Executed 'chown' to set owner of the .ssh/ folder as the new user. But when I log in as the new user, I get a 'Permission denied (publickey).' message. Here is what I see when I run ssh -v -i: debug1: Authentications that can continue: publickey debug1: Next authentication method: publickey debug1: Trying private key: test (HowTos)