I have a remote SFTP site setup to use SSH keys. I have tested this and it is working from my command line and several scripts I wrote.

However... konqueror is giving me a hard time.

I have the following config file in my .ssh directory:
Host myhost.com
Hostname myhost.com
IdentityFile /home/user/.ssh/keyfilename
PasswordAuthentication no
PubkeyAuthentication yes
User myname

In konqueror I use the following
sftp://myname@myhost.com/

When I hit enter (or click that bookmark) konqueror insists on asking me for a password. If I hit cancel, it does go ahead and use the key and connect me, but the whole point of using keys (wellllll part of the point) is to avoid that password prompt.

What do I need to change to get this working right?

Thank you.

Rather unusual behaviour - libssh2 is supposed to respect the SSH configuration.
Which version of KDE and libssh2 are you using?