ssh_exchange_identification: Connection closed by remote host

Firstly, I know that this question has been asked a million times, and I have read everything I can find and still cannot fix the problem.

i am encountering this issue when ssh'ing in from my mac to my Ubuntu server on a fresh install of Ubuntu (I reinstalled because of this issue).

I have SSH portmapped to 7070 because my ISP is blocking 22.

On the client:

bash: ssh -p 7070 -v [email protected]
debug1: Reading configuration data /etc/ssh_config
debug1: Connecting to address.org port 7070. 
debug1: Connection established. 
debug1: identity file /home/me/.ssh/identity type -1
debug1: identity file /home/me/.ssh/id_rsa type 1
debug1: identity file /home/me/.ssh/id_dsa type -1
ssh_exchange_identification: Connection closed by remote host

Here's what I have done to try to resolve the issue:

Made sure my maxstartups is ok:

bash: grep MaxStartups /etc/ssh/sshd_config
#MaxStartups 10:30:60

• Made sure hosts.deny is clear of denials.
• Made sure hosts.allow has my client IP.
• Clear out known_hosts on client
• Changed ownership of /var/run to root
• Made sure etc/run/ssh is
• Made sure /var/empty exists
• Reinstall openssh-server
• Reinstall ubuntu

When I run telnet localhost, I get this:

telnet localhost
Trying ::1...
Trying 127.0.0.1...
telnet: Unable to connect to remote host: Connection refused

When I run /usr/sbin/sshd -t

Could not load host key: /etc/ssh/ssh_host_rsa_key  
Could not load host key: /etc/ssh/ssh_host_dsa_key  

When I regenerate the keys with

ssh-keygen -t rsa -f /etc/ssh/ssh_host_rsa_key  
ssh-keygen -t dsa -f /etc/ssh/ssh_host_dsa_key  

I get the same error.

I am pretty sure this is the issue. Can anyone help?

I started getting this error right after I edited by /etc/hosts.allow.

See before I fixed and after.

before

ALL: 192.168.1 notice no period after 192.168.1

ssh_exchange_identification: Connection closed by remote host

After

ALL: 192.168.1. see the extra period after 192.168.1.

[email protected]'s password:
Welcome to Linux Mint 11 Katya (GNU/Linux 2.6.38-8-generic i686)

I know this question is kind of old, but since it doesn't have an accepted answer yet here is the solution that worked for me in the sample case of connecting to a VM machine at Koding.com:

Change your .ssh/config file

from:

Host *.kd.io User myusername ProxyCommand ssh %[email protected] nc %h %p

to:

Host *.kd.io
    User myusername
    ProxyCommand ssh [email protected] nc %h %p

Note 2 things:

1. 3 lines instead of 1, last 2 lines with 4 spaces as indentation
2. to avoid the error percent_expand: unknown key %r I changed %r to my username

I am running Centos6