Hadoop localhost: Connection closed by 127.0.0.1 error

Error messages when starting Hadoop using start-all.sh:
localhost: Connection closed by 127.0.0.1

Error in namenode log:
jobtracker.info could only be replicated to 0 nodes, instead of 1


Example:
~/hadoop-0.20.2/bin:./start-dfs.sh
starting namenode, logging to /Users/dc/hadoop-0.20.2/bin/../logs/hadoop-dc-namenode-d-cs-MacBook-Pro.local.out
localhost: Connection closed by 127.0.0.1
localhost: Connection closed by 127.0.0.1
~/hadoop-0.20.2/bin:cd ..

From the namenode log:
2012-01-05 09:14:02,662 ERROR org.apache.hadoop.hdfs.server.namenode.NameNode: org.apache.hadoop.hdfs.server.common.InconsistentFSStateException: Directory /Users/dc/hadoop/tmp/dfs/name is in an inconsistent state: storage directory does not exist or is not accessible.

Reformat the namenode, still get error messages in namenode log. This seems to imply something wrong with formatting the tmp drive space. I deleted the tmp directory... didnt help:

java.io.IOException: File /Users/dc/hadoop/tmp/mapred/system/jobtracker.info could only be replicated to 0 nodes, instead of 1

2) check ssh!!!
~/hadoop-0.20.205.0:ssh localhost
Connection closed by 127.0.0.1

This isn't right. You should be able to ssh to yourself.
Look in secure.log under /var/log which is ssh log.

Jan 5 10:01:50 d-cs-MacBook-Pro sshd[76277]: error: PAM: authentication error for root from dc-pc via 127.0.0.1
Jan 5 10:01:51 d-cs-MacBook-Pro sshd[76278]: Connection closed by 127.0.0.1



Under MACBOOK I set sharing to Selected Users when enabling remote login or ssh on my macbook.
Change to ALL USERS.