SSH Public Key - No supported authentication methods available (server sent public key)

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http://askubuntu.com – I have a 12.10 server setup in a virtual machine with its network set to bridged (essentially will be seen as a computer connected to my switch). I installed opensshd via apt-get and was able to connect to the server using putty with my username and password. I then set about trying to get it to use public/private key authentication. I did the following: Generated the keys using PuttyGen. Moved the public key to /etc/ssh/myusername/authorized_keys (I am using encrypted home directories). Set up sshd_config like so: PubkeyAuthentication yes AuthorizedKeysFile /etc/ssh/%u/authorized_keys (HowTos)