You have just nailed it.
There was a SSH CBC vulnerability reported by US-CERT.
http://www.kb.cert.org/vuls/id/958563
I'm not sure how the vulnerability is exploited. But to be safe, I
disable all CBC related ciphers.
After enabling all the default ciphers "aes128-ctr,aes128-cbc,arcfour,
3des-cbc,blowfish-cbc", the "encryption_client algorithm" is solved.



do you know anything about this SSH CBC vulnerability? If it is a
security problem when CBC related cipher enabled on SSH server, any
plan for Net:SSH to support non CBC ciphers?

On Jan 15, 4:03 pm, Jamis Buck <ja...@37signals.com> wrote:
> This can also be caused if your SSH server is configured to allow only a
> small subset of cipher algorithms, and that subset does not overlap any
> of the algorithms that Net::SSH supports.
>
> Net::SSH supports the following ciphers:
>
>   aes128-cbc
>   3des-cbc
>   blowfish-cbc
>   cast128-cbc
>   aes192-cbc
>   aes256-cbc
>   rijndael-...@lysator.liu.se
>   idea-cbc
>   none
>
> (Though it is strongly recommended to not use 'none'. It's really only
> useful for debugging Net::SSH.)
>
> If there is a cipher you want that isn't included there, you'll need to
> see how to make Ruby's OpenSSL bindings provide it.
>
> - Jamis
>
> On 1/15/09 8:37 AM, Lee Hambley wrote:
>
> > This might be ssh v1 vs. v2 issues, are you definately using SSH v2,
> > with v2 keys? (i think it is a difference between DSA, and RSA keys)
> > - Lee
>
> > 2009/1/15 Xazoola <col...@gmail.com <mailto:col...@gmail.com>>
>
> >     Hi,
> >     I am getting a ConnectionError on Solaris. Works find on Linux. anyone
> >     know what causes this error?
>
> >     Capistrano::ConnectionError, connection failed for: <IPADDRESS>
> >     (Net::SSH::Exception: could not settle on encryption_client algorithm)
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