Disconnected: no supported authentication methods available
Try taking the group writeable permissions from your home directory:
chmod g-w ~/
Make your .ssh folder readable/writeable/executable only by you:
chmod 700 ~/.ssh
Make your authorized keys file readable/writeable only by you:
chmod 600 ~/.ssh/authorized_keys
That should remove the permissions errors.
Success!
All I had to do is change StrictModes
to no.
Per section 3.14 in the OpenSSH FAQ and http://blogs.nullvision.com/?p=114 .
Wow.
Had a similar issue. When poking around I noticed that I had my home directories encrypted, and suspected that was the issue. I copied the authorized keys file to a directory outside of the encrypted home directory, changed the permissions appropriately (chmod 700 [dir], chmod 600 [dir]/authorized_keys, etc.).
Then edit your sshd_config to tell sshd of the new location for the authorized keys file, restart sshd, and that's it.
Seems to have fixed my problem.