Problem connecting to AWS using private key [3]

Can't connect to an Amazon AWS server using private key file. I can connect using ssh and putty with the key but xshell can't connect. A trace produces:
Connection established.
To escape to local shell, press 'Ctrl+Alt+]'.
[09:47:27] Version exchange initiated...
[09:47:27] server: SSH-2.0-OpenSSH_5.9p1 Debian-5ubuntu1.4
[09:47:27] client: SSH-2.0-nsssh2_5.0.0009 NetSarang Computer, Inc.
[09:47:27] SSH2 is selected.
[09:47:27] Algorithm negotiation initiated...
[09:47:27] key exchange: diffie-hellman-group14-sha1
[09:47:27] host key: ssh-dss
[09:47:27] outgoing encryption: aes128-cbc
[09:47:27] incoming encryption: aes128-cbc
[09:47:27] outgoing mac: hmac-sha1
[09:47:27] incoming mac: hmac-sha1
[09:47:27] outgoing compression: none
[09:47:27] incoming compression: none

Connection closed by foreign host.

I can use ssh or putty but really miss xshell - any ideas?

Program Ver. : Xshell 5

Can you send us the sshd log file to support@netsarang.com? The trace info doesn't reveal why the connection could not be made.


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Technical Support

When I try to enable logging using the 'session->advanced->session logging' for the connection and then initiate the connection I do not get a log file being created. Am I missing something?

I figured out how to get it to create the log finaly but it simply has what the trace gave me. I nonetheless have attached it here.