For development tests, I need to setup an SFTP server. So I want to know if it's possible to use the same machine as the client and the server. I tried and I keep getting this error:

> Permission denied (publickey).
> Connection closed

and by running ssh -v agharroud@localhost i get :

> OpenSSH_3.8.1p1,OpenSSL 0.9.7d 17 Mar 
> debug1: Reading configuration data /etc/ssh_config 
> debug1: Connecting to localhost [127.0.0.1] port 22.
> debug1: Connection established.   
> debug1: identity file /home/agharroud/.ssh/identity type -1
> debug1: identity file /home/agharroud/.ssh/id_rsa type 1
> debug1: identity file /home/agharroud/.ssh/id_dsa type -1
> debug1: Remote protocol version 2.0, remote software version OpenSSH_3.8.1p1 
> debug1: match: OpenSSH_3.8.1p1 pat OpenSSH* 
> debug1: Enabling compatibility mode for protocol 2.0 
> debug1: Local version string SSH-2.0-OpenSSH_3.8.1p1 
> debug1: SSH2_MSG_KEXINIT sent 
> debug1: SSH2_MSG_KEXINIT received 
> debug1: kex:server->client aes128-cbc hmac-md5 none 
> debug1: kex: client->server aes128-cbc hmac-md5 none 
> debug1: SSH2_MSG_KEX_DH_GEX_REQUEST(1024<1024<8192) 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 'localhost' is known and matches the RSA host key. 
> debug1: Found key in /home/agharroud/.ssh/known_hosts:1
> debug1: ssh_rsa_verify: signature correct 
> 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
> 
>                         ****USAGE WARNING****
> 
> This is a private computer system. This computer system, including all
> related equipment, networks, and network devices (specifically
> including Internet access) are provided only for authorized use. This
> computer system may be monitored for all lawful purposes, including to
> ensure that its use is authorized, for management of the system, to
> facilitate protection against unauthorized access, and to verify
> security procedures, survivability, and operational security. Monitoring
> includes active attacks by authorized entities to test or verify the
> security of this system. During monitoring, information may be
> examined, recorded, copied and used for authorized purposes. All
> information, including personal information, placed or sent over this
> system may be monitored.
> 
> Use of this computer system, authorized or unauthorized,
> constitutes consent to monitoring of this system. Unauthorized use may
> subject you to criminal prosecution. Evidence of unauthorized use collected
> during monitoring may be used for administrative, criminal, or other
> adverse action. Use of this system constitutes consent to monitoring for
> these purposes.
> 
> debug1: Authentications that can continue: publickey 
> debug1: Next authentication method: publickey
> debug1: Trying private key:/home/agharroud/.ssh/identity
> debug1: Offering public key:/home/agharroud/.ssh/id_rsa
> debug1:Authentications that can continue:publickey 
> debug1: Trying private key:/home/agharroud/.ssh/id_dsa
> debug1: No more authentication methods to try. 
> Permission denied (publickey).

Any ideas about the problem ? thanks !