I had the same problem, uninstalling seahorse fixed it. Boy, I was
trying to figure out what was going on. A wierd thing happened which I
thought might help. when I login to kde and try ssh'ing i got a dialog
box asking for my ssh passphrase with an option to store it in my
keyring. I entered my passphrase it brought me to the login on the
konsole. I was able to successfully log in. I logged out and tried to
ssh again..no dialog this time and it just hangs then on when I try to
ssh anywhere

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ssh (client) stops working after upgrade to Feisty
https://bugs.launchpad.net/bugs/76030
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