Moodle networking (MNet)

Hi all,
I have 2 moodles on separate machines on th same LAN. One moodle is 1.9.4 the other 1.9.5. I can generate a public key on both instances with expiry dates in the future.
When I go to add a peer from either moodles I get the "There was a problem retrieving the public key.
Maybe the host does not allow Moodle Networking or the key is invalid."
Networking is on.
I seem logical that the public key is either not being saved or is not in the search path or is not readable by the calling process.
Where is the public key stored?
John