SSH doesn't accept public key, and permissions appear to be correct

Question

me@a1:~/me$ ssh -v ae@1.1.1.1
OpenSSH_5.9p1 Debian-5ubuntu1, OpenSSL 1.0.1 14 Mar 2012
debug1: Connecting to 1.1.1.1 [1.1.1.1] port 22.
debug1: Connection established.
debug1: identity file /home/me/.ssh/id_rsa type 1
debug1: Checking blacklist file /usr/share/ssh/blacklist.RSA-2048
debug1: Checking blacklist file /etc/ssh/blacklist.RSA-2048
debug1: identity file /home/me/.ssh/id_rsa-cert type -1
debug1: identity file /home/me/.ssh/id_dsa type -1
debug1: identity file /home/me/.ssh/id_dsa-cert type -1
debug1: identity file /home/me/.ssh/id_ecdsa type -1
debug1: identity file /home/me/.ssh/id_ecdsa-cert type -1
debug1: Remote protocol version 2.0, remote software version OpenSSH_4.3
debug1: match: OpenSSH_4.3 pat OpenSSH_4*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_5.9p1 Debian-5ubuntu1
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: server->client aes128-ctr hmac-md5 none
debug1: kex: client->server aes128-ctr hmac-md5 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST(1024<1024<8192) sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
debug1: Server host key: RSA 23:2d:18:a3:88:d4:91:34:a4:85:..........
debug1: Host '1.1.1.1' is known and matches the RSA host key.
debug1: Found key in /home/me/.ssh/known_hosts:6
debug1: ssh_rsa_verify: signature correct
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: SSH2_MSG_NEWKEYS received
debug1: Roaming not allowed by server
debug1: SSH2_MSG_SERVICE_REQUEST sent
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug1: Authentications that can continue: publickey,gssapi-with-mic,password
debug1: Next authentication method: publickey
debug1: Offering RSA public key: /home/me/.ssh/id_rsa
debug1: Authentications that can continue: publickey,gssapi-with-mic,password
debug1: Trying private key: /home/me/.ssh/id_dsa
debug1: Trying private key: /home/me/.ssh/id_ecdsa
debug1: Next authentication method: password
ae@1.1.1.1's password: 

and then

me@a1:~/me$ tail /var/log/auth.log
May 11 10:17:01 a1 CRON[21454]: pam_unix(cron:session): session closed for user root
May 11 11:17:01 a1 CRON[22859]: pam_unix(cron:session): session opened for user root by (uid=0)
May 11 11:17:01 a1 CRON[22859]: pam_unix(cron:session): session closed for user root

Doesn't say anything about permissions. SSH works for other hosts - can I conclude from this, that this is an issue with the public key on the server, rather than on my PC?

The only other thing that I can think of is that my username on my PC is "me", whereas the username on the remote server is "ae".

When it works, for another server, it looks like this:

...
debug1: Next authentication method: publickey
debug1: Offering RSA public key: /home/me/.ssh/id_rsa
debug1: Server accepts key: pkalg ssh-rsa blen 279
debug1: Authentication succeeded (publickey).
Authenticated to 1.1.1.2 ([1.1.1.2]:22).
debug1: channel 0: new [client-session]
debug1: Entering interactive session.
Last login: Mon May  7 21:25:09 2012 from 2.2.2.2
[username@server2 ~]$ 

Answer 1

Objectionable server admin had copied the key wrongly. (X_X)