diff --git a/CHANGELOG.rdoc b/CHANGELOG.rdoc
index d351def8d..07e576e10 100644
--- a/CHANGELOG.rdoc
+++ b/CHANGELOG.rdoc
@@ -1,5 +1,9 @@
 === (unreleased)
 
+* Make key manager use private keys instead of requiring public key to exist [arilerner@mac.com]
+
+* Fix failing tests [arilerner@mac.com]
+
 * Don't include pageant when running under JRuby [Angel N. Sciortino]
 
 
diff --git a/Manifest b/Manifest
index 55682c663..2e9d4a79e 100644
--- a/Manifest
+++ b/Manifest
@@ -62,6 +62,7 @@ lib/net/ssh/verifiers/strict.rb
 lib/net/ssh/version.rb
 lib/net/ssh.rb
 Manifest
+net-ssh.gemspec
 Rakefile
 README.rdoc
 setup.rb
@@ -101,4 +102,3 @@ test/transport/test_server_version.rb
 test/transport/test_session.rb
 test/transport/test_state.rb
 THANKS.rdoc
-TODO
diff --git a/lib/net/ssh/authentication/key_manager.rb b/lib/net/ssh/authentication/key_manager.rb
index d12b30e18..0a4c3f660 100644
--- a/lib/net/ssh/authentication/key_manager.rb
+++ b/lib/net/ssh/authentication/key_manager.rb
@@ -87,12 +87,12 @@ def identities
               known_identities[key] = { :from => :agent }
             end
           end
-
+          
           key_files.each do |file|
-            public_key_file = file + '.pub'
-            if File.readable?(public_key_file)
+            if File.readable?(file)
               begin
-                key = KeyFactory.load_public_key(public_key_file)
+                private_key = KeyFactory.load_private_key(file)
+                key = private_key.send :public_key
                 identities.push key
                 known_identities[key] = { :from => :file, :file => file }
               rescue Exception => e
diff --git a/test/authentication/methods/test_hostbased.rb b/test/authentication/methods/test_hostbased.rb
index 1245e136e..0a994fb64 100644
--- a/test/authentication/methods/test_hostbased.rb
+++ b/test/authentication/methods/test_hostbased.rb
@@ -16,6 +16,7 @@ def test_authenticate_should_return_false_when_key_manager_has_no_keys
     end
 
     def test_authenticate_should_return_false_if_no_keys_can_authenticate
+      ENV.stubs(:[]).with('USER').returns(nil)
       key_manager.expects(:sign).with(&signature_parameters(keys.first)).returns("sig-one")
       key_manager.expects(:sign).with(&signature_parameters(keys.last)).returns("sig-two")
 
@@ -37,6 +38,7 @@ def test_authenticate_should_return_false_if_no_keys_can_authenticate
     end
 
     def test_authenticate_should_return_true_if_any_key_can_authenticate
+      ENV.stubs(:[]).with('USER').returns(nil)
       key_manager.expects(:sign).with(&signature_parameters(keys.first)).returns("sig-one")
 
       transport.expect do |t, packet|
diff --git a/test/authentication/test_key_manager.rb b/test/authentication/test_key_manager.rb
index f6486f996..00f5f4a23 100644
--- a/test/authentication/test_key_manager.rb
+++ b/test/authentication/test_key_manager.rb
@@ -32,13 +32,13 @@ def test_identities_should_load_from_key_files
       manager.stubs(:agent).returns(nil)
 
       stub_file_key "/first", rsa
-      stub_file_key "/second", dsa
+      stub_file_key "/second", dsa      
 
       identities = manager.identities
       assert_equal 2, identities.length
       assert_equal rsa.to_blob, identities.first.to_blob
       assert_equal dsa.to_blob, identities.last.to_blob
-
+      
       assert_equal({:from => :file, :file => "/first"}, manager.known_identities[rsa])
       assert_equal({:from => :file, :file => "/second"}, manager.known_identities[dsa])
     end
@@ -75,8 +75,8 @@ def test_sign_with_file_originated_key_should_load_private_key_and_sign_with_it
       def stub_file_key(name, key, also_private=false)
         manager.add(name)
         File.expects(:readable?).returns(true)
-        Net::SSH::KeyFactory.expects(:load_public_key).with("#{name}.pub").returns(key)
-        Net::SSH::KeyFactory.expects(:load_private_key).with(name, nil).returns(key) if also_private
+        Net::SSH::KeyFactory.expects(:load_private_key).with(name, nil).returns(key).at_least_once
+        key.expects(:public_key).returns(key)
       end
 
       def rsa(size=32)