I tried a system ssh command and it works, but server.ssh still fails:
require 'rubygems'
require 'fog'
require 'rake'
require File.join(File.expand_path(File.dirname(__FILE__)), 'install_cmds')
AWS_ID = XXX
AWS_KEY = YYYY
PUBLIC_KEY_PATH = File.join(File.expand_path(File.dirname(__FILE__)), '..', 'ec2-keys', 'XXX.pem')
PRIVATE_KEY_PATH = File.join(File.expand_path(File.dirname(__FILE__)), '..', 'ec2-keys', 'YYYY.pem')