Apparently I do not configfure right ssh. Please help me correct it. Below is the response after running ssh with the -v flag :
poncho% ssh2 -v -X -l badboy yyy.yyy.yyy.yyy
debug: Ssh2/ssh2.c:1650: License file found, PKI enabled = TRUE.
debug: SshConfig/sshconfig.c:2838: Metaconfig parsing stopped at line 3.
debug: SshConfig/sshconfig.c:3130: Read 0 params from config file.
debug: Ssh2/ssh2.c:1707: User config file not found, using defaults. (Looked for '/export/home/hvt/.ssh2/ssh2_c
onfig')
debug: Connecting to yyy.yyy.yyy.yyy, port 22... (SOCKS not used)
debug: Ssh2Transport/trcommon.c:3676: My version: SSH-1.99-3.2.9 SSH Secure Shell
debug: client supports 3 auth methods: 'publickey,keyboard-interactive,password'
debug: Ssh2Common/sshcommon.c:537: local ip = xxx.xxx.xxx.xxx, local port = 33847
debug: Ssh2Common/sshcommon.c:539: remote ip = yyy.yyy.yyy.yyy, remote port = 22
debug: SshConnection/sshconn.c:1945: Wrapping...
debug: SshReadLine/sshreadline.c:2427: Initializing ReadLine...
debug: Remote version: SSH-2.0-3.2.9 SSH Secure Shell
debug: Major: 3 Minor: 2 Revision: 9
debug: Ssh2Transport/trcommon.c:1367: lang s to c: `', lang c to s: `'
debug: Ssh2Transport/trcommon.c:1433: c_to_s: cipher aes128-cbc, mac hmac-sha1, compression none
debug: Ssh2Transport/trcommon.c:1436: s_to_c: cipher aes128-cbc, mac hmac-sha1, compression none
debug: Remote host key found from database.
debug: Ssh2Common/sshcommon.c:332: Received SSH_CROSS_STARTUP packet from connection protocol.
debug: Ssh2Common/sshcommon.c:382: Received SSH_CROSS_ALGORITHMS packet from connection protocol.
debug: server offers auth methods 'publickey,password'.
debug: Ssh2AuthPubKeyClient/authc-pubkey.c:1794: Starting pubkey auth...
debug: Ssh2AuthPubKeyClient/authc-pubkey.c:1751: Agent is not running.
debug: Ssh2AuthPubKeyClient/authc-pubkey.c:1549: Got 0 keys from the agent.
debug: SshConfig/sshconfig.c:2745: Unable to open /export/home/hvt/.ssh2/identification
debug: Ssh2AuthPubKeyClient/authc-pubkey.c:1529: Trying 0 key candidates.
debug: Ssh2AuthPubKeyClient/authc-pubkey.c:983: All keys declined by server, disabling method.
debug: Ssh2AuthClient/sshauthc.c:319: Method 'publickey' disabled.
debug: server offers auth methods 'publickey,password'.
debug: Ssh2AuthPasswdClient/authc-passwd.c:105: Starting password auth...
badboy's password: