Nov 30 11:58:56 li321-228 sshd[7292]: error: key_from_blob: can't read dsa key
Nov 30 11:58:56 li321-228 sshd[7292]: error: key_read: key_from_blob AAAAB3NzaC1kc3MAAACBALZa7U63gJeJm5zHAaP9x1fQKfRdvkbHukV6T8S+392Vs74gQTLn\n failed
Not noticing the "\n" at first glance, i realized that when i pasted the multi-line DSA key into the authorized_keys file, it had newlines in it. Take out the newlines and you are set !