discover-nodes fails on scp'ing keys

On Karmic RC and eucalyptus 1.6~bzr931-0ubuntu7 :

spindler@beaufighter:~$ euca_conf --no-rsync --discover-nodes
WARNING: Unhandled message: interface=org.freedesktop.DBus.Introspectable, path=/, member=Introspect
Failed to resolve service '192.168.1.103' of type '_eucalyptus._tcp' in domain 'local': Timeout reached
New node found on 192.168.1.106; add it? [Yn] Y
--2009-10-27 09:55:10-- http://127.0.0.1:8774/axis2/services/
Connecting to 127.0.0.1:8774... connected.
HTTP request sent, awaiting response... 200 OK
Length: 730 [text/html]
Saving to: `STDOUT'

100%[======================================>] 730 --.-K/s in 0s

2009-10-27 09:55:10 (33.1 MB/s) - `-' saved [730/730]

INFO: We expect all nodes to have eucalyptus installed in //var/lib/eucalyptus/keys for key synchronization.
warning: //var/lib/eucalyptus/keys//node-cert.pem doesn't exists!
warning: //var/lib/eucalyptus/keys//cluster-cert.pem doesn't exists!
warning: //var/lib/eucalyptus/keys//node-pk.pem doesn't exists!
warning: //var/lib/eucalyptus/keys//cloud-cert.pem doesn't exists!

Trying scp to sync keys to: eucalyptus@192.168.1.106://var/lib/eucalyptus/keys/...
usage: scp [-1246BCpqrv] [-c cipher] [-F ssh_config] [-i identity_file]
           [-l limit] [-o ssh_option] [-P port] [-S program]
           [[user@]host1:]file1 ... [[user@]host2:]file2
failed.

ERROR: could not synchronize keys with 192.168.1.106!
The configuration will not have this node.
Hint: to setup passwordless login to the nodes as user eucalyptus, you can
run the following commands on node 192.168.1.106:
sudo -u eucalyptus mkdir -p ~eucalyptus/.ssh
sudo -u eucalyptus tee ~eucalyptus/.ssh/authorized_keys > /dev/null <<EOT
ssh-rsa AAAAB3NzaC1yc2EAAAABIwAAAQEAzevjR4XjLoB0vA3Q43Y96lEb14rBGaueHIj0g3nN3YhbQGzSy6rveSGbwZKQbw7ZtixvsTczTzH1eCKDui00LecZ8SlGreLVWpCnN91PIg3pc9xz+iNY6n6p817k6rkIJEsbbGjtbJHouV+v2UJBgi2H763S0Mw3sJ+RF0lrd55ehgwk22yeOgViJIv9cEkGHWqegJ/oi+E96XZZNirGiRh7QgnewtPngnR14DNIEFaqBjOANjolWBLIzLfWbkcASOdHXGAuUb9BOI1DT+VjAlceiblNKZNJqhGD+auu3PoMW2QSx6pfGh8wG1oT5WRnNtb9HdioZEJu9zkGDg9UHw== eucalyptus@beaufighter
EOT

Be sure that authorized_keys is not group/world readable or writable