sshd Authentication refused

[David Highley]

New install of Fedora 13 we get the following /var/log/secure entry when
we ssh from a Fedora 12 system to the Fedora 13 system:
Authentication refused: bad ownership or modes for file /home/dhighley/.ssh/authorized_keys

We have checked and tried different modes until we are blue in the face.
Have read the upates notes for openssh and Fedora 13 release. Googled
the net for know issues and bugzilla.redhat.com. We did check for
selinux blocks and found none.

User home directory is auto NFS mounted and we use NIS. This works
Fedora 12 to Fedora 12.