I also have this issue, but only since I rebuilt the ssh server (Ubuntu Server 
10.04 LTS) and created new keys.  My client (Lucid) hasn't changed other than 
routine updates and I don't recall any ssh ones there.
The SSH_AUTH_SOCK fix works.

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gnome-keyring-daemon returns Agent admitted failure to sign using the key.
https://bugs.launchpad.net/bugs/328127
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