all calls to ssh-keygen need "-t rsa". This was reported by a friend of mine, and I haven't checked it for sure. Although, I can attest to the init script throwing out errors upon startup the first time.
Works fine here.
The init script works fine if you remove your host keys and run it? This bug shows up on a brand new installation, the very first time the script is run.
I reported this in bug #1024 and attached a patch. When generating the v1 host key, you need -t rsa1. When generating the v2 keys, you need -t rsa and -t dsa. I left the -t dsa out because -d is equivalent. However, upon reflection, it is probably best to specify -t dsa as it is clearer to the reader of the script, and -d is not in the ssh-keygen manpage.
Yep, merged it on my work box (one im typing now) yesterday, and all three keys generated fine. Except if it is a silent failure.
I saw this today while doing an 'emerge system' on a new install. adding -t dsa1 appears to the correct answer. I updated the rc scripts to match this.