Unable to use Public Key ssh authentication

I have a linux host that is managed using ssh. The host is being managed using ssh with a password, and it works. I created a user account and generated a key using ssh-keygen.

When I check the box for "Public Key Authentication" and paste the id_rsa file contents in the field labeled "Private Key" I get:

Authentication failed. Kindly verify the username and password provided.
Check whether the PasswordAuthentication is set as yes in /etc/ssh/sshd_config file.Kindly set it as yes and restart the SSH daemon.More Info >>.

PasswordAuthentication is turned on (obviously, as it's working with the password right now). In addition, the form now has the "Public Key Authentication" checkbox unchecked, and I have to re-check it each time I try a new key.

I have now tried pasting the private key, the public key, portions of the public key (leaving out the id-rsa part and leaving out the hostname at the end).

I also tried this with a different account that has a dsa key, and tried the same things with it.

In all cases, I get the same misleading error. By the way, this error has a *green* icon next to it!