I've been trying to make lsh work every now and then, but I always run
into this problem.  Then I'm trying to connect using
        lsh --sloppy-host-authentication --port=3456 localhos
everything works fine:
        Failed to open '/home/lars/.lsh/known_hosts' (errno = 2): No such file or 
directory.
        Received unauthenticated key for host localhost
        Fingerprint: 436090b129ea241cd158df8edc0ae30c524bfdc9
        Do you trust this key? (y/n) y
        Password for lars: 
but then, typing in my password won't get me anywhere.

Debug messages at the server side looks like this:
        DEBUG: Received USERAUTH_REQUEST *****
        nhandle_connection: Received packet of type 50 (USERAUTH_REQUEST)
        DEBUG: Sent USERAUTH_FAILURE (size 24 = 0x18)
with no indication of the problem.

I'm running on a Debian GNU/Linux box with shadow passwords.

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