I greatly appreciate your help suicidaleggroll and chrism01. I do not have sshd_config on my system. This file seems to be used by sshd, a server daemon which I do not have installed. I did find etc/ssh/ssh_config and I added the line:
PubkeyAuthentication yes
which changed the last five lines of my output to:
debug1: Offering RSA public key: /home/jesse/.ssh/id_rsa
debug1: Server accepts key: pkalg ssh-rsa blen 279
debug1: read PEM private key done: type RSA
debug1: Authentications that can continue: publickey,password
debug1: Next authentication method: password
I also added the following to no effect (of course)
HostbasedAuthentication yes
IdentityFile ~/.ssh/id_rsa
EnableSSHKeysign yes
I would really like to implement this public key authentication. It seems like the appropriate way to protect a clients data when automating uploads to a webhost. Any further help, advise, or insight from anyone would be greatly appreciated. I will show my file permissions and my 2 bash scripts if that helps anyone:
sftp> pwd
Remote working directory: /.ssh
sftp> ls -al
drwx------ 2 USER www 3 Jul 3 12:10 .
drwxr-x--- 8 USER www 28 Jul 2 11:58 ..
-rw------- 1 USER www 404 Jul 2 16:24 authorized_keys
[jesse .ssh]$ ls -al
total 20
drwx------ 2 jesse jesse 4096 2012-07-02 13:23 .
drwx------ 34 jesse jesse 4096 2012-07-03 07:17 ..
-r-------- 1 jesse jesse 1679 2012-07-02 13:23 id_rsa
-rw------- 1 jesse jesse 404 2012-07-02 13:23 id_rsa.pub
-rw------- 1 jesse jesse 540 2012-06-29 16:16 known_hosts
sftp -2 -v -i /home/jesse/.ssh/id_rsa -P 2222
USER@ftp.ipage.com
ssh -2 -v -i /home/jesse/.ssh/id_rsa -p 2222
USER@ftp.ipage.com