I originally thought authorized_keys2 was a directory so when I followed the instructions I copied the file into that directory and it did not work. After correct it I was still not able to connect without a password.
Since my key was putting localhost into the key I figured that would not be a very helpful to identify a remote host. Since I am doing this on my iBook and I set up that as my hostname, I wanted to change the ibook to replace localhost. Apparently MacOS X does not have an easy way to do it from Networking Preferences. I had to dig into sysctl and set kern.hostname.
sysctl -w kern.hostname=ibook
But this does not stay the same after a reboot, so I had to configure a script in StartupItems to set the hostname at startup.
After changing the hostname I figured it would be a good idea to regenerate the server keys before generating my personal keys. I found a site which had directions which worked fine for me...
Then after I generated my personal key and uploaded it as the filename as in the article it started to work for me.