If I understood everything correctly last time I read the ssh2 docs, I
believe that .shosts doesn't work with ssh2. I never got them to work
for myself, and it looks like your messages are complaining because
they're trying to find some form of input so they can give you a
password prompt.
What I
Hmm...I just started using rsync but my cron job commands look MUCH
different than yours. Did you create a public/private key (using
ssh-keygen2 -P) with no password and move it to both machines? You'll also
need to go into the /.ssh2 dir and create an authorization (public keys
authorized to co