I found a Dutch site (and don't speak or write Dutch) and was able to make out that cgi-bin must have a .ssh directory with Apache write access. The key is written by Apache - then the login is as expected - belonging to the user/pass given.
In case anyone else encounters this hudle! I hope this information helps.
Thanks again to both Talexb and Graff! Now I'm off to learn what both of you already know about cgi, perl, html.....(the list goes on - I have a TON to learn!) :-)
Ronni
2005-10-05 Retitled by planetscape, as per Monastery guidelines
Original title: 'Update'