Infrastructure Software

We are having a client connecting with SSH version Secure Shell 3.2.9
(commercial version) to our site openssh version
OpenSSH_3.9p1. But we have problem connecting. We used to see the following
message :-

bash-2.03$ ./ssh -V xx.xx.com
ssh: SSH Secure Shell 3.2.9 on sparc-sun-solaris2.8
bash-2.03$ ./ssh -v xxx.com
debug: SshConfig/sshconfig.c:2838/ssh2_parse_config_ext: Metaconfig parsing
stopped at line 3.
debug: SshConfig/sshconfig.c:3130/ssh_config_read_file_ext: Read 0 params
from config file.
debug: Ssh2/ssh2.c:1707/main: User config file not found, using defaults.
(Looked for '/home/xx/.ssh2/ssh2_config')
debug: Connecting to xxx.com, port 22... (SOCKS not used)
debug: Ssh2Transport/trcommon.c:3676/ssh_tr_create: My version:
SSH-1.99-3.2.9 SSH Secure Shell
debug: client supports 3 auth methods:
'publickey,keyboard-interactive,password'
debug: Ssh2Common/sshcommon.c:537/ssh_common_wrap: local ip = xx.xx.xx.xx,
local port = 55584
debug: Ssh2Common/sshcommon.c:539/ssh_common_wrap: remote ip = xx.xx.xx.xx,
remote port = 22
debug: SshConnection/sshconn.c:1945/ssh_conn_wrap: Wrapping...
debug: SshReadLine/sshreadline.c:2427/ssh_readline_eloop_initialize:
Initializing ReadLine...
debug: Remote version: SSH-2.0-OpenSSH_3.9p1
debug: OpenSSH: Major: 3 Minor: 9 Revision: 0
debug: Ssh2Transport/trcommon.c:973/ssh_tr_input_version: All versions of
OpenSSH handle kex guesses incorrectly.
debug: Ssh2Transport/trcommon.c:585/ssh_tr_up_disconnect: Already
disconnected.
debug: Ssh2Common/sshcommon.c:169/ssh_common_disconnect: DISCONNECT
received: Connection closed.
debug: SshReadLine/sshreadline.c:2485/ssh_readline_eloop_uninitialize:
Uninitializing ReadLine...
warning: Authentication failed.
Disconnected; connection lost (Connection closed.).
debug: Ssh2Common/sshcommon.c:662/ssh_common_destroy: Destroying SshCommon
object.
debug: SshConnection/sshconn.c:1997/ssh_conn_destroy: Destroying SshConn
object.

Please let me know anyone face the same issue? How to solve this.

Thanks for any help