If you are getting this error it is usually caused by having more than 5 keys in your ".ssh" directory. It is a bit of a bug and this is how it manifests itself.
You will find at this point that you are not given any chance to enter a password, or if you are using key based auth that the same thing happens. You'll also find that this is happening with ALLservers you try connecting to.
The solution is to move away key pairs from .ssh so that there ar........