Macfusion: Can't mount SSHFS directory, "Authentication has failed."

Mostly two things happen when key authentication is not working:

1. Your public key is not in the destination user's authorized_keys file

2. OpenSSH server is very picky when it comes to permissions:

   • The destination user's .ssh directory must belong to the destination user and needs 700 permissions. (drwx------)
   • The destination user's authorized_keys file within the .ssh directory needs 600 permissions. (rw-------)

Additionally, take a look at the destination SSH server configuration:

...
#StrictModes yes
...
#RSAAuthentication yes
#PubkeyAuthentication yes
...
AuthorizedKeysFile      .ssh/authorized_keys
...
#PasswordAuthentication no
#PermitEmptyPasswords no
...

With these options set, it works on my side...