Looks like there was a problem with your public key file. PuttyGen will create a public key file that looks like:
Below is the example code of file :
---- BEGIN SSH2 PUBLIC KEY ---- Comment: "rsa-key-20121022" AAAAB3NzaC1yc2EAAAABJQAAAIEAhGF6GIuMY8FJ1+CNApnSY1N2YSlkYz72Yvwu a6N1nFpBklz1+dsIMg4rcTLcF34M/tW5Yz+NUDAw2AEbxQ32FPgw7sAOIXktkYOH tr7mmimiTjkoSCrJh1kqalPSpi8rglT/Bp67Ql2SZwvUFfMzHISryR0EZC4rXP/u vObrJe8= ---- END SSH2 PUBLIC KEY ----
However, this will not work, so what you need to do is to open the key in PuttyGen, and then copy it from there (this results in the key being in the right format and in 1 line):
ssh-rsa AAAAB3NzaC1yc2EAAAABJQAAAIEAhGF6GIuMY8FJ1+CNApnSY1N2YSlkYz72Yvwua6N1nFpBklz1+dsIMg4rcTLcF34M/tW5Yz+NUDAw2AEbxQ32FPgw7sAOIXktkYOHtr7mmimiTjkoSCrJh1kqalPSpi8rglT/Bp67Ql2SZwvUFfMzHISryR0EZC4rXP/uvObrJe8= rsa-key-20121022
Paste this into authorized_keys then it should work.