I have same error when forgot add
{{{
#!bash

IdentytyFile ~/.ssh/id_rsa
}}}

to ~/.ssh/config when try clone repo on production server.
With read only key access
https://confluence.atlassian.com/display/BITBUCKET/Using+the+SSH+protocol+with+bitbucket

Thanks for letting us know it worked, and for the feedback

I get it now... It HAS TO BE username hg, Please make it more appealing in the help, so that noobs like me wont get confused

yeah, that works fine...

Okay, can you try using 'hg' as the username, then, as per the guide?

Nope, I am not using hg as the username. I am using my username (radaczynski). Here's what I see in the console (I have created the private <-> public key pair and have an appropriate key under .ssh dir in my home):

{{{
#!sh
bartek@domowy:~/Dokumenty/python/shabti/pull$ hg -v clone ssh://radaczynski@bitbucket.org/radaczynski/shabti/
running ssh -C radaczynski@bitbucket.org "hg -R radaczynski/shabti/ serve --stdio"
radaczynski@bitbucket.org's password:
radaczynski@bitbucket.org's password:
radaczynski@bitbucket.org's password:
remote: Permission denied, please try again.
remote: Permission denied, please try again.
remote: Permission denied (publickey,password).
abort: no suitable response from remote hg!
}}}

Of course, when it asks I supply a correct password (which works fine when I push via https) and it still fails...

Are you using 'hg' as the username? Can you give me a backlog of what happens (everything from 'hg pull' to the error.)