I got this when I tried to connect my new instace (UBUNTU 12.01 EC2) with my newly generated key

sh-3.2# ssh ec2-user@**** -v ****.pem
OpenSSH_5.6p1, OpenSSL 0.9.8r 8 Feb 2011
debug1: Reading configuration data /etc/ssh_config
debug1: Applying options for *
debug1: Connecting to **** [****] port 22.
debug1: Connection established.
debug1: permanently_set_uid: 0/0
debug1: identity file /var/root/.ssh/id_rsa type -1
debug1: identity file /var/root/.ssh/id_rsa-cert type -1
debug1: identity file /var/root/.ssh/id_dsa type -1
debug1: identity file /var/root/.ssh/id_dsa-cert type -1
debug1: Remote protocol version 2.0, remote software version OpenSSH_5.9p1 Debian-5ubuntu1
debug1: match: OpenSSH_5.9p1 Debian-5ubuntu1 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_5.6
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: Host '****' is known and matches the RSA host key.
debug1: Found key in /var/root/.ssh/known_hosts:4
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
debug1: Next authentication method: publickey
debug1: Trying private key: /var/root/.ssh/id_rsa
debug1: Trying private key: /var/root/.ssh/id_dsa
debug1: No more authentication methods to try.