Find out whether the public key is in authorized_keys or authorized_keys2. If it is in authorized_keys2, then please check its permissions and make sure it to be 600, not 640. It should work at any cost, if it is not working, please try the entire process with a new user in both machines. I am sure it will work. Because whatever steps you have mentioned r all correct as far as i can grasp.
Last edited by saagar; 03-29-2010 at 12:25 PM.