I was studying the packets exchanged in ssh protocol using wireshark and i noticed that TCP connection is getting established and keys are exchanged, before i accept the server certificate. Isn't it that server has to be authenticated before establishing a connection? The capture shown below is before accepting or rejecting the certificate.
Link to capture image. Sorry, I didn't have privileges to post image here
http://dl.dropbox.com/u/2558114/serverfault.JPG
PS
1. SSH certificate cache was cleared.
2. Certificate was rejected.