X11 forwarding not working with OpenSSH 1.2.1 pre27.

[Dax T.Games]

When I try to run any X11 app I get the following:
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X11 connection rejected because of wrong authentication.

kedit: Fatal IO error: client killed
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The DISPLAY variable maps to an IP address other than 127.0.0.1 and is listed
int /etc/hosts.

I am not a member of this list so a CC: to dgames at isoc.net would be nice.

Any help would be appreciated.

Thanks
Dax Games