Lessons Learned...
While setting up my linux server running Ubuntu in VMWare Fusion to perform automated backups, I found no matter what I could not get it to log onto my macs side with key-based SSH authentication. So after an archive and install and a few hours on the phone / over iChat with Jesse, we found the problem was something very simple–the permissions on my keys folder was 777 instead of 755. A few quick commands in the terminal and it was back in business… Computers are that way though–a problem that can last all day to solve takes about three seconds to fix.