I am having this problem also, and "GSSAPIAuthentication no" didn't help at all.  I have version 4.3p2-8ubuntu1.

Here is what I got, it hangs on "debug2: we sent a keyboard-interactive packet, wait for reply" for about 10 seconds.

ssh -vvv root@192.168.0.3
OpenSSH_4.3p2 Debian-8ubuntu1, OpenSSL 0.9.8c 05 Sep 2006
debug1: Reading configuration data /etc/ssh/ssh_config
debug1: Applying options for *
debug2: ssh_connect: needpriv 0
debug1: Connecting to 192.168.0.3 [192.168.0.3] port 22.
debug1: Connection established.
debug1: identity file /home/andy/.ssh/identity type -1
debug1: identity file /home/andy/.ssh/id_rsa type -1
debug1: identity file /home/andy/.ssh/id_dsa type -1
debug1: Remote protocol version 1.99, remote software version OpenSSH_3.9p1
debug1: match: OpenSSH_3.9p1 pat OpenSSH_3.*
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_4.3p2 Debian-8ubuntu1
debug2: fd 3 setting O_NONBLOCK
debug1: SSH2_MSG_KEXINIT sent
debug1: SSH2_MSG_KEXINIT received
debug2: kex_parse_kexinit: diffie-hellman-group-exchange-sha1,diffie-hellman-group14-sha1,diffie-hellman-group1-sha1
debug2: kex_parse_kexinit: ssh-rsa,ssh-dss
debug2: kex_parse_kexinit: aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,arcfour128,arcfour256,arcfour,aes192-cbc,aes256-cbc,<email address hidden>,aes128-ctr,aes192-ctr,aes256-ctr
debug2: kex_parse_kexinit: aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,arcfour128,arcfour256,arcfour,aes192-cbc,aes256-cbc,<email address hidden>,aes128-ctr,aes192-ctr,aes256-ctr
debug2: kex_parse_kexinit: hmac-md5,hmac-sha1,hmac-ripemd160,<email address hidden>,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: hmac-md5,hmac-sha1,hmac-ripemd160,<email address hidden>,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: none,<email address hidden>,zlib
debug2: kex_parse_kexinit: none,<email address hidden>,zlib
debug2: kex_parse_kexinit: 
debug2: kex_parse_kexinit: 
debug2: kex_parse_kexinit: first_kex_follows 0 
debug2: kex_parse_kexinit: reserved 0 
debug2: kex_parse_kexinit: diffie-hellman-group-exchange-sha1,diffie-hellman-group14-sha1,diffie-hellman-group1-sha1
debug2: kex_parse_kexinit: ssh-rsa,ssh-dss
debug2: kex_parse_kexinit: aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,arcfour,aes192-cbc,aes256-cbc,<email address hidden>,aes128-ctr,aes192-ctr,aes256-ctr
debug2: kex_parse_kexinit: aes128-cbc,3des-cbc,blowfish-cbc,cast128-cbc,arcfour,aes192-cbc,aes256-cbc,<email address hidden>,aes128-ctr,aes192-ctr,aes256-ctr
debug2: kex_parse_kexinit: hmac-md5,hmac-sha1,hmac-ripemd160,<email address hidden>,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: hmac-md5,hmac-sha1,hmac-ripemd160,<email address hidden>,hmac-sha1-96,hmac-md5-96
debug2: kex_parse_kexinit: none,zlib
debug2: kex_parse_kexinit: none,zlib
debug2: kex_parse_kexinit: 
debug2: kex_parse_kexinit: 
debug2: kex_parse_kexinit: first_kex_follows 0 
debug2: kex_parse_kexinit: reserved 0 
debug2: mac_init: found hmac-md5
debug1: kex: server->client aes128-cbc hmac-md5 none
debug2: mac_init: found hmac-md5
debug1: kex: client->server aes128-cbc hmac-md5 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST(1024<1024<8192) sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
debug2: dh_gen_key: priv key bits set: 141/256
debug2: bits set: 505/1024
debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
debug3: check_host_in_hostfile: filename /home/andy/.ssh/known_hosts
debug3: check_host_in_hostfile: match line 12
debug1: Host '192.168.0.3' is known and matches the RSA host key.
debug1: Found key in /home/andy/.ssh/known_hosts:12
debug2: bits set: 526/1024
debug1: ssh_rsa_verify: signature correct
debug2: kex_derive_keys
debug2: set_newkeys: mode 1
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug2: set_newkeys: mode 0
debug1: SSH2_MSG_NEWKEYS received
debug1: SSH2_MSG_SERVICE_REQUEST sent
debug2: service_accept: ssh-userauth
debug1: SSH2_MSG_SERVICE_ACCEPT received
debug2: key: /home/andy/.ssh/identity ((nil))
debug2: key: /home/andy/.ssh/id_rsa ((nil))
debug2: key: /home/andy/.ssh/id_dsa ((nil))
debug1: Authentications that can continue: publickey,keyboard-interactive
debug3: start over, passed a different list publickey,keyboard-interactive
debug3: preferred publickey,keyboard-interactive,password
debug3: authmethod_lookup publickey
debug3: remaining preferred: keyboard-interactive,password
debug3: authmethod_is_enabled publickey
debug1: Next authentication method: publickey
debug1: Trying private key: /home/andy/.ssh/identity
debug3: no such identity: /home/andy/.ssh/identity
debug1: Trying private key: /home/andy/.ssh/id_rsa
debug3: no such identity: /home/andy/.ssh/id_rsa
debug1: Trying private key: /home/andy/.ssh/id_dsa
debug3: no such identity: /home/andy/.ssh/id_dsa
debug2: we did not send a packet, disable method
debug3: authmethod_lookup keyboard-interactive
debug3: remaining preferred: password
debug3: authmethod_is_enabled keyboard-interactive
debug1: Next authentication method: keyboard-interactive
debug2: userauth_kbdint
debug2: we sent a keyboard-interactive packet, wait for reply
debug2: input_userauth_info_req
debug2: input_userauth_info_req: num_prompts 1
Password: