If you have root access to the server, the easy way to solve such problems is to run sshd in debug mode, e.g.:
service ssh stop # will not kill existing ssh connections
/usr/sbin/sshd -d # full path to sshd executable needed, 'which sshd' can help
...debug output...
service ssh start
(If you can access the server through any port, you can just use /usr/sbin/sshd -d -p <port number> to avoid having to stop the SSH server. You still need to be root though.)
In the debug output, look for something like
debug1: trying public key file /path/to/home/.ssh/authorized_keys
...
Authentication refused: bad ownership or modes for directory /path/to/home/
chmod 700– Rob Apr 16 '12 at 14:55/var/log/auth.logwill tell you why the login is failing. – UtahJarhead Apr 17 '12 at 4:05