diff --git a/demo.py b/demo.py
index dfb7231..9633c5c 100755
--- a/demo.py
+++ b/demo.py
@@ -23,7 +23,10 @@ def load_host_keys():
         for host in hosts:
             if not keys.has_key(host):
                 keys[host] = {}
-            keys[host][keytype] = base64.decodestring(key)
+            if keytype == 'ssh-rsa':
+                keys[host][keytype] = paramiko.RSAKey(data=base64.decodestring(key))
+            elif keytype == 'ssh-dss':
+                keys[host][keytype] = paramiko.DSSKey(data=base64.decodestring(key))
     f.close()
     return keys
 
@@ -75,7 +78,7 @@ try:
         print '*** WARNING: Unknown host key!'
     elif not keys[hostname].has_key(key.get_name()):
         print '*** WARNING: Unknown host key!'
-    elif keys[hostname][key.get_name()] != str(key):
+    elif keys[hostname][key.get_name()] != key:
         print '*** WARNING: Host key has changed!!!'
         sys.exit(1)
     else:
diff --git a/demo_simple.py b/demo_simple.py
index 0bc46bf..d31b063 100755
--- a/demo_simple.py
+++ b/demo_simple.py
@@ -23,7 +23,10 @@ def load_host_keys():
         for host in hosts:
             if not keys.has_key(host):
                 keys[host] = {}
-            keys[host][keytype] = base64.decodestring(key)
+            if keytype == 'ssh-rsa':
+                keys[host][keytype] = paramiko.RSAKey(data=base64.decodestring(key))
+            elif keytype == 'ssh-dss':
+                keys[host][keytype] = paramiko.DSSKey(data=base64.decodestring(key))
     f.close()
     return keys
 
@@ -70,7 +73,7 @@ if hkeys.has_key(hostname):
 # now, connect and use paramiko Transport to negotiate SSH2 across the connection
 try:
     t = paramiko.Transport((hostname, port))
-    t.connect(username=username, password=password, hostkeytype=hostkeytype, hostkey=hostkey)
+    t.connect(username=username, password=password, hostkey=hostkey)
     chan = t.open_session()
     chan.get_pty()
     chan.invoke_shell()
diff --git a/paramiko/pkey.py b/paramiko/pkey.py
index a7dc8a8..a872ae8 100644
--- a/paramiko/pkey.py
+++ b/paramiko/pkey.py
@@ -143,7 +143,7 @@ class PKey (object):
 
         @since: fearow
         """
-        return ''.join(base64.encodestring(str(self)).split('\n'))
+        return base64.encodestring(str(self)).replace('\n', '')
 
     def sign_ssh_data(self, randpool, data):
         """
diff --git a/paramiko/transport.py b/paramiko/transport.py
index 9b171c7..eeac020 100644
--- a/paramiko/transport.py
+++ b/paramiko/transport.py
@@ -693,7 +693,7 @@ class BaseTransport (threading.Thread):
             self.lock.release()
         return chan
 
-    def connect(self, hostkeytype=None, hostkey=None, username='', password=None, pkey=None):
+    def connect(self, hostkey=None, username='', password=None, pkey=None):
         """
         Negotiate an SSH2 session, and optionally verify the server's host key
         and authenticate using a password or private key.  This is a shortcut
@@ -712,13 +712,9 @@ class BaseTransport (threading.Thread):
         succeed, but a subsequent L{open_channel} or L{open_session} call may
         fail because you haven't authenticated yet.
 
-        @param hostkeytype: the type of host key expected from the server
-        (usually C{"ssh-rsa"} or C{"ssh-dss"}), or C{None} if you don't want
-        to do host key verification.
-        @type hostkeytype: str
         @param hostkey: the host key expected from the server, or C{None} if
         you don't want to do host key verification.
-        @type hostkey: str
+        @type hostkey: L{PKey<pkey.PKey>}
         @param username: the username to authenticate as.
         @type username: str
         @param password: a password to use for authentication, if you want to
@@ -733,8 +729,8 @@ class BaseTransport (threading.Thread):
 
         @since: doduo
         """
-        if hostkeytype is not None:
-            self._preferred_keys = [ hostkeytype ]
+        if hostkey is not None:
+            self._preferred_keys = [ hostkey.get_name() ]
 
         event = threading.Event()
         self.start_client(event)
@@ -750,14 +746,14 @@ class BaseTransport (threading.Thread):
                 break
 
         # check host key if we were given one
-        if (hostkeytype is not None) and (hostkey is not None):
+        if (hostkey is not None):
             key = self.get_remote_server_key()
-            if (key.get_name() != hostkeytype) or (str(key) != hostkey):
+            if (key.get_name() != hostkey.get_name()) or (str(key) != str(hostkey)):
                 self._log(DEBUG, 'Bad host key from server')
-                self._log(DEBUG, 'Expected: %s: %s' % (hostkeytype, repr(hostkey)))
+                self._log(DEBUG, 'Expected: %s: %s' % (hostkey.get_name(), repr(str(hostkey))))
                 self._log(DEBUG, 'Got     : %s: %s' % (key.get_name(), repr(str(key))))
                 raise SSHException('Bad host key from server')
-            self._log(DEBUG, 'Host key verified (%s)' % hostkeytype)
+            self._log(DEBUG, 'Host key verified (%s)' % hostkey.get_name())
 
         if (pkey is not None) or (password is not None):
             event.clear()
@@ -1003,7 +999,7 @@ class BaseTransport (threading.Thread):
 
     def _verify_key(self, host_key, sig):
         key = self._key_info[self.host_key_type](Message(host_key))
-        if (key == None) or not key.valid:
+        if key is None:
             raise SSHException('Unknown host key type')
         if not key.verify_ssh_sig(self.H, Message(sig)):
             raise SSHException('Signature verification (%s) failed.  Boo.  Robey should debug this.' % self.host_key_type)