Dreamhost Server refuses public key

[rhand]

Been trying to connect to a Dreamhost virtual host without any issues, but this morning my public key keeps on getting refused:

Command: open "user@example.com" 22
Trace: Server version: SSH-2.0-OpenSSH_5.1p1 Debian-5
Trace: Using SSH protocol version 2
Trace: We claim version: SSH-2.0-PuTTY_Local:_Jan__8_2012_14:35:51
Trace: Doing Diffie-Hellman group exchange
Trace: Doing Diffie-Hellman key exchange with hash SHA-256
Command: Trust new Hostkey: Once
Trace: Host key fingerprint is:
Trace: ssh-rsa 2048 0e:c2:f6:f4:d9:86:9d:4b:c4:3d:77:e7:a4:bb:59:14
Trace: Initialised AES-256 SDCTR client->server encryption
Trace: Initialised HMAC-SHA1 client->server MAC algorithm
Trace: Initialised AES-256 SDCTR server->client encryption
Trace: Initialised HMAC-SHA1 server->client MAC algorithm
Trace: Pageant is running. Requesting keys.
Trace: Pageant has 1 SSH-2 keys
Trace: Trying Pageant key #0
Trace: Server refused public key
Command: Pass: ************
Trace: Sent password
Trace: Access denied
Error: Authentication failed.
Error: Critical error
Error: Could not connect to server

Any ideas why this might happen?

Update: Never mind. Seems a DH sftp password reset due to a possible breach.