[Bug 201786] [NEW] ssh Agent admitted failure to sign using the key

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on hardy (preserved home folder from feisty) i get the following when i
try to ssh

Agent admitted failure to sign using the key.
Permission denied (publickey).

or with verbose on

sam at titania:~$ ssh -v oberon
OpenSSH_4.7p1 Debian-4ubuntu1, OpenSSL 0.9.8g 19 Oct 2007
debug1: Reading configuration data /home/sam/.ssh/config
debug1: Applying options for oberon
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Applying options for *
debug1: Connecting to ###### [######] port ##.
debug1: Connection established.
debug1: identity file /home/sam/.ssh/identity type -1
debug1: identity file /home/sam/.ssh/id_rsa type 1
debug1: identity file /home/sam/.ssh/id_dsa type -1
debug1: Remote protocol version 2.0, remote software version OpenSSH_4.6p1 Debian-5ubuntu0.1
debug1: match: OpenSSH_4.6p1 Debian-5ubuntu0.1 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_4.7p1 Debian-4ubuntu1
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: server->client aes128-cbc hmac-md5 none
debug1: kex: client->server aes128-cbc hmac-md5 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST(1024<1024<8192) sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
debug1: using hostkeyalias: oberon
debug1: Host 'oberon' is known and matches the RSA host key.
debug1: Found key in /home/sam/.ssh/known_hosts:1
debug1: ssh_rsa_verify: signature correct
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: SSH2_MSG_NEWKEYS received
debug1: SSH2_MSG_SERVICE_REQUEST sent
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug1: Authentications that can continue: publickey
debug1: Next authentication method: publickey
debug1: Offering public key: /home/sam/.ssh/id_rsa
debug1: Server accepts key: pkalg ssh-rsa blen 277
Agent admitted failure to sign using the key.
debug1: Trying private key: /home/sam/.ssh/identity
debug1: Trying private key: /home/sam/.ssh/id_dsa
debug1: No more authentication methods to try.
Permission denied (publickey).

I tried generating a new key. this worked for a few logons, but then i
get back to this error.

I think it is to do with the local key agent. i found that
 SSH_AUTH_SOCK=0 ssh oberon
works fine.

** Affects: openssh (Ubuntu)
     Importance: Undecided
         Status: New

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ssh Agent admitted failure to sign using the key
https://bugs.launchpad.net/bugs/201786
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