This is odd, i just tried to reproduce this and was not able to on Natty. Could i ask that you generate a new set of ssh keys, and confirm that you are able to reproduce this issue using them keys?
... debug2: we sent a publickey packet, wait for reply debug1: Server accepts key: pkalg ssh-rsa blen 277 ... -- You received this bug notification because you are a member of Ubuntu Server Team, which is subscribed to openssh in ubuntu. https://bugs.launchpad.net/bugs/705431 Title: publickey authentication on dropbear server fails -- Ubuntu-server-bugs mailing list Ubuntu-server-bugs@lists.ubuntu.com Modify settings or unsubscribe at: https://lists.ubuntu.com/mailman/listinfo/ubuntu-server-bugs