I just deployed a new Fedora 17 server on the Amazon EC2. I was able to log in as ec2-user with my generated keypair, but I cannot log in under normal circumstances as a user I created. This is just a normal ssh:

ssh user@ip-address

Any ideas on what is going on here?

EDIT: This is a snippit from my sshd_config file

# To disable tunneled clear text passwords, change to no here!
PasswordAuthentication no
#PermitEmptyPasswords no
PasswordAuthentication no

EDIT AGAIN: This is the output of ssh -v.

OpenSSH_5.8p2, OpenSSL 1.0.0i-fips 19 Apr 2012
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Applying options for *
debug1: Connecting to 107.23.2.165 [107.23.2.165] port 22.
debug1: Connection established.
debug1: identity file /home/psion/.ssh/id_rsa type 1
debug1: identity file /home/psion/.ssh/id_rsa-cert type -1
debug1: identity file /home/psion/.ssh/id_dsa type 2
debug1: identity file /home/psion/.ssh/id_dsa-cert type -1
debug1: Remote protocol version 2.0, remote software version OpenSSH_5.9
debug1: match: OpenSSH_5.9 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_5.8
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 19:cb:84:21:a9:0e:83:96:2f:6a:fa:7d:ce:39:0f:31
debug1: Host '107.23.2.165' is known and matches the RSA host key.
debug1: Found key in /home/psion/.ssh/known_hosts:5
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-keyex,gssapi-with-mic
debug1: Next authentication method: gssapi-keyex
debug1: No valid Key exchange context
debug1: Next authentication method: gssapi-with-mic
debug1: Unspecified GSS failure.  Minor code may provide more information
Credentials cache file '/tmp/krb5cc_1000' not found

debug1: Unspecified GSS failure.  Minor code may provide more information
Credentials cache file '/tmp/krb5cc_1000' not found

debug1: Unspecified GSS failure.  Minor code may provide more information

debug1: Unspecified GSS failure.  Minor code may provide more information

debug1: Next authentication method: publickey
debug1: Offering DSA public key: /home/psion/.ssh/id_dsa
debug1: Authentications that can continue: publickey,gssapi-keyex,gssapi-with-mic
debug1: Offering RSA public key: /home/psion/.ssh/id_rsa
debug1: Authentications that can continue: publickey,gssapi-keyex,gssapi-with-mic
debug1: No more authentication methods to try.
Permission denied (publickey,gssapi-keyex,gssapi-with-mic).