Quite possible, the students are instructed to create a key called
'mykey' in the exercise. With this the problem can be reproduced:

$ euca-add-keypair mykey2 > mykey2.priv
$ euca-add-keypair mykey2 > mykey2.priv
$ euca-run-instances -t c1.medium -k mykey2 emi-DF481077
$ ssh -i mykey2.priv 172.24.129.128
Permission denied (publickey).

-- 
SSH key stopped working
https://bugs.launchpad.net/bugs/514198
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