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Hmmm ... perhaps a line break or a space in the authorized_keys file in the wrong place? It's easy insert one by accident when using cut-and-paste.
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Are you talking about the file name or the contents in the file itself? The filename itself is correct, no trailing whitespace or anything and is correctly spelled, as for the file contents itself I can't see anything wrong with it I populated it using
cat id_rsa.pub >> ~/.ssh/authorized_keys
Anyways I have found the problem, it was in my sshd_config this line was wrong
AuthorizedKeysFile .ssh/authorized_keys
I was able to correct it restart the ssh daemon and it is working, all that is left is figuring out what is wrong with shh on my Mac.
Thanks everyone for the help in this matter.
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Ah, and it would have been so easy to spot
I meant the contents of the file. The problem cannot happen if you use cat
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