Ubuntu :: SSH From OSX Using RSA Authentication Error Permission Denied (publickey,password)

I am trying to set up remote login via SSH from my Mac to an Ubuntu desktop. Here is the error i am getting:

Code: Permission denied (publickey,password). I'll give background:

- Both computers are on the same network
- I'm not using the default port 22
- I have successfully logged in using password authentication, so it isn't a firewall/iptables issue i don't think. I've already worked through those issues!
- I haven't set up any tcp wrappers on the server yet, so nothing is being denied
- I believe the server sshd_config file is setup correctly. I can post it if needed.

Here's debugging info:
bash-3.2$ ssh localuser@xxx.xxx.x.x -v
OpenSSH_5.2p1, OpenSSL 0.9.7l 28 Sep 2006
debug1: Reading configuration data /etc/ssh_config
debug1: Connecting to xxx.xxx.x.x [xxx.xxx.x.x] port xx.
debug1: fd 3 clearing O_NONBLOCK
debug1: Connection established.
debug1: identity file /Users/localuser/.ssh/id_rsa type 1
[Code]....