ssh keys not working [1]

I'm evaluating Xmanager and it seems to work fine, and is stable. I particularly like the SSH functionality to forward X11 connections.
I have one problem though, Xmanager doesn't appear to work using OpenSSH-generated private keys. I know its not a server configuration problem because I use passwdless/keyed X11 forwarding with no problems on all my *nix platforms.

The errors:

Exchanging SSH version...Done.
Server: SSH-2.0-OpenSSH_3.0.2p1.
Client: SSH-2.0-Xssh_1.0.
SSH2 is enabled.

Negotiating algorithms...
Initiating key exchange...Done.
Exchanging Diffie-Hellman KeyEx message...Done.
Waiting for new key message...Received.
Fingerprint: 1024 74:4b:72:7e:d7:57:82:89:f6:7f:fd:f0:cb:05:16:0e.Verifying host key...
Algorithm negotiation has been finished...
CS Cipher: 3des-cbc, SC Cipher: 3des-cbc
CS Compress: none, SC Compress: none
CS MAC: hmac-sha1, SC MAC: hmac-sha1

Then a dialog box comes up and says:

Public key authentication method for SSH2 is not available for now. Please try the password authentication instead.

The key itself is not corrupt, its RSA, and it works with all other applications that use it. Syslog on the server reports nothing.

Any ideas whats wrong, or if OpenSSH private keys aren't supported?

Xmanager doesn't support SSH2 public key authentication. This feature will be added soon. In the mean time, please try the password method for SSH2 server.

- Technical Support