Ok I figured out my problem and now I feel stupid... However in the interest of making the list archive complete so that other, perhaps also stupid people, can fix this problem (should they be so stupid as to create it), I will post the details (in the process revealing my stupidity) :)
Turns out that there was an old entry in /etc/hosts for my machine name. It listed a 192.160.x.x IP that used to be correct (when the box was on my LAN). Apparently sshd fires up xauth, which checks the /etc/hosts file...and in my case, added authorization for the wrong ip. I tracked down this problem by running my sshd with the -d option, which caused the client to spew a lot more info, one line being the offending xauth command. Thanks to everyone who offered help, especially [EMAIL PROTECTED], who suggested the debugging parameters... -Mark