SSH Problem: ssh_exchange_identification: Connection closed by remote host

Are you tired of getting the exception ssh_exchange_identification: Connection closed by remote host even if the key is correct !?????? 

Then here are few tips to rectify that ...!!

1) Check the permission of /var/log/btmp, it must be 600 
    chmod 600 /var/log/btmp

now
ll /var/log/btmp
-rw------- 1 root utmp 73026817 Jan 11 11:13 btmp

Check now....!!! Still not solved !!?????

2) /var/empty/sshd must be owned by root and not group or world-writable
chown -R root:root /var/empty/sshd

Now  
ll  /var/empty/sshd 
-rw------- 1 root utmp 73026817 Jan 11 11:13 sshd

Then Try, U must be logged-in !!!

Have FUN!!!