Permission denied (publickey,password,keyboard-interactive)

#       $OpenBSD: sshd_config,v 1.59 2002/09/25 11:17:16 markus Exp $

# This is the sshd server system-wide configuration file.  See
# sshd_config(5) for more information.

# This sshd was compiled with PATH=/usr/local/bin:/bin:/usr/bin

# The strategy used for options in the default sshd_config shipped with
# OpenSSH is to specify options with their default value where
# possible, but leave them commented.  Uncommented options change a
# default value.

Port 22
Protocol 2
#ListenAddress 0.0.0.0
#ListenAddress ::

# HostKey for protocol version 1
#HostKey /etc/ssh/ssh_host_key
# HostKeys for protocol version 2
HostKey /etc/ssh/ssh_host_rsa_key
HostKey /etc/ssh/ssh_host_dsa_key
# Lifetime and size of ephemeral version 1 server key
#KeyRegenerationInterval 3600
#ServerKeyBits 768

# Logging
#obsoletes QuietMode and FascistLogging
SyslogFacility AUTH
LogLevel VERBOSE

# Authentication:

#LoginGraceTime 120
PermitRootLogin no
StrictModes no

RSAAuthentication no
PubkeyAuthentication yes
#AuthorizedKeysFile     .ssh/authorized_keys
AuthorizedKeysFile      /home/vmware/.ssh/authorized_keys

# rhosts authentication should not be used
#RhostsAuthentication no
# Don't read the user's ~/.rhosts and ~/.shosts files 
IgnoreRhosts yes
# For this to work you will also need host keys in /etc/ssh/ssh_known_hosts
RhostsRSAAuthentication no
# similar for protocol version 2
HostbasedAuthentication no
# Change to yes if you don't trust ~/.ssh/known_hosts for 
# RhostsRSAAuthentication and HostbasedAuthentication
IgnoreUserKnownHosts yes

# To disable tunneled clear text passwords, change to no here!
PasswordAuthentication no
PermitEmptyPasswords no

# Change to no to disable s/key passwords
#ChallengeResponseAuthentication no

# Kerberos options
#KerberosAuthentication no
#KerberosOrLocalPasswd yes
#KerberosTicketCleanup yes

#AFSTokenPassing no
# Kerberos TGT Passing only works with the AFS kaserver
#KerberosTgtPassing no

# Set this to 'yes' to enable PAM keyboard-interactive authentication 
# Warning: enabling this may bypass the setting of 'PasswordAuthentication' 
#PAMAuthenticationViaKbdInt no

#X11Forwarding no

X11DisplayOffset 10
#X11UseLocalhost yes
#PrintMotd yes
#PrintLastLog yes
#KeepAlive yes
#UseLogin no
#UsePrivilegeSeparation yes
#PermitUserEnvironment no
#Compression yes

#MaxStartups 10
# no default banner path
#Banner /some/path
#VerifyReverseMapping no
#ShowPatchLevel no

# override default of no subsystems
Subsystem       sftp    /usr/libexec/openssh/sftp-server
Ciphers aes256-cbc,aes128-cbc