This part: "debug: RSA authentication using agent refused."
looks bad. However, the fact that you enabled "PermitEmptyPasswords" in your sshd suggests that you should still be able to login. Maybe your ssh client can't deal with the empty password? Do your ssh and sshd versions match? If you have the files under ~/.ssh/ set up properly, you shouldn't even be prompted for the password -- a passphrase, maybe. -chris
