This is one of the common error many system administrators face after configuring password-less ssh (key based authentication between two unix servers. The password-less ssh does not work and (ssh asks for the user password) and /var/log/messages file would show an error message “sshd[15426]:Authentication refused: bad ownership or modes for file”.
Most of the times this error comes due to incorrect permissions on $HOME/.ssh/authorized_keys file.
Make sure the permissions of $HOME/.ssh/authorized_keys file and other important files is as given...