Unable to Connect via SSH

I am at somewhat of a loss as to what to do about this, I would like to beable to SSH into this machine, it's not 100% needed, but would make life easier. - The machine in question is one that I had a hard drive go bad on me, I ended up making a bootable CD with all of the programs and apps that I normally use on that machine pre-installed. had a couple of weird issues, like it always wants me to login to the machine when first booted up, I can live with that. BUT I can't get SSH to work to save me...at 1st I thought maybe it was because the key had changed so I removed the "old" machines key. That didn't seem to have any effect. I port scanned the machine to be sure that SSH is running, and it is.
the next thing I did was issue the command:

ssh -vvv 192.168.1.104 HERE is the output:

lfmiller@lfmiller-desktop:~/.ssh$ ssh 192.168.1.104
Read from socket failed: Connection reset by peer
lfmiller@lfmiller-desktop:~/.ssh$ ssh -vvv 192.168.1.104
OpenSSH_5.5p1 Debian-4ubuntu5, OpenSSL 0.9.8o 01 Jun 2010
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Applying options for *
debug2: ssh_connect: needpriv 0
debug1: Connecting to 192.168.1.104 [192.168.1.104] port 22.
debug1: Connection established.
debug1: identity file /home/lfmiller/.ssh/id_rsa type -1
debug1: identity file /home/lfmiller/.ssh/id_rsa-cert type -1
debug1: identity file /home/lfmiller/.ssh/id_dsa type -1
debug1: identity file /home/lfmiller/.ssh/id_dsa-cert type -1
debug1: Remote protocol version 2.0, remote software version OpenSSH_5.5p1 Debian-4ubuntu5
debug1: match: OpenSSH_5.5p1 Debian-4ubuntu5 pat OpenSSH*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_5.5p1 Debian-4ubuntu5
debug2: fd 3 setting O_NONBLOCK
debug1: SSH2_MSG_KEXINIT sent
Read from socket failed: Connection reset by peer
lfmiller@lfmiller-desktop:~/.ssh$

I am at a loss as to what this really means, but it looks like it is connecting to the machine, and the machine is just rejecting the connection.
Anybody with any ideas?

Thanks