Using Ubuntu 11.10 64bit for x2goserver

Installed everything as usual

>From my client (also Ubuntu 11.10 64 bit)... I try to connect and get the message about accepting
a server connection not seen before and I answer - yes.

I then get the x2goclient window to provide my password and I do so.

It comes back immediately with this message?

Access denied. Authentication that can continue: publickey,keyboard-interactive

I've not seen that before but anyone got an idea what's causing it?

sshd_config on the server is configured to allow password logins

Brian