ssh public key auth fails

I am a starter in unix and networking issues. I need to connect to a remote server using SFTP using keys without prompting for password. I generated keys and copied to ssh dir. when i try to connect the remote server using ssh or sftp i am getting this message. I am unable to figure out whats the problem. the debug log shows this: connection is being closed by remote host.

debug1: Reading configuration data packages/OpenSSH/config/options.properties
debug1: Applying options for *
debug1: Connecting to xxxxx [xxxxxxxx] port xx.
debug1: Connection established.
debug1: identity file openssh/intserv.rsa type 1
debug1: Remote protocol version 2.0, remote software version OpenSSH_3.7.1p2-pwexp26
debug1: match: OpenSSH_3.7.1p2-pwexp26 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_3.7.1p2-pwexp26
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug1: kex: server->client aes128-cbc hmac-md5 zlib
debug1: kex: client->server aes128-cbc hmac-md5 zlib
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
debug1: Host 'plslc022' is known and matches the RSA host key.
debug1: Found key in /home/webmthhr/.ssh/known_hosts:4
debug1: ssh_rsa_verify: signature correct
debug1: Enabling compression at level 6.
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: SSH2_MSG_NEWKEYS received
debug1: SSH2_MSG_SERVICE_REQUEST sent
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug1: Authentications that can continue: publickey,password,keyboard-interactive
debug1: Next authentication method: publickey
debug1: Offering public key: openssh/intserv.rsa
debug1: Authentications that can continue: publickey,password,keyboard-interactive
debug1: No more authentication methods to try.
Permission denied (publickey,password,keyboard-interactive).
debug1: Calling cleanup 0x40015a3a(0x0)
debug1: compress outgoing: raw data 265, compressed 225, factor 0.85
debug1: compress incoming: raw data 107, compressed 70, factor 0.65
Connection closed

It would be real gr8 if someone could help me know whats the real problem is.
thank in advance

Did you put the public key in the remote's authorized_keys2 file?