sibeen, please stop starting new posts when you are really just continuing the first post. "Reply" to one of your existing posts when you are really just continuing the same question. If I have not lost count, you have posted 3 times about this same ssh rsa host key issue, and Linc Davis and I have been trying to keep track of all the details, but with it spread out across multiple new posts, it is difficult.
I'm guessing as you again forgot to post the actual error (I'm starting to wonder if you are testing how well Linc and I can guess at your problem 🙂 ). Anyway, I'm guessing that you managed to delete the $HOME/.ssh/known_hosts file, and now when you try to ssh to 10.0.0.2 it wants to add the remote system's host rsa key into a newly created known_hosts file.
The authenticity of host '[10.0.0.2]:22([10.0.0.2]:22)' can't be established.
RSA key fingerprint is xx:xx:xx:xx:xx:xx:xx:xx:xx:xx:xx:xx:xx:xx:xx:xx.
Are you sure you want to continue connecting (yes/no)?
Generally the command ask if you want to do this, yes or no. You type "yes" and your Mac memorizes the remote system's host rsa key.
If this is not the warning message you are seeing, then as Linc has requested, please post the exact error (feel free to mask put the actual key or usernames or IP addresses, but keep the words.
If you are still getting the original error from 3 posts ago, then I would not try editing $HOME/.ssh/known_hosts, and instead just delete the file, and when you get a message like I have posted above, answer it with "yes".
WIth respect to pico, Mac OS X already has pico installed, so there was no need to download it from anywhere. However, most people just use 'nano' which has essentially replaced 'pico' as an easy to use Terminal based text editor. But like I said, I think you will be happier if you just delete the known_hosts file and get on with your ssh operations.
Finally, I think in your 2nd post you indicated you tried deleting a file that had a dash in the name (known-hosts) instead of an underscore (known_hosts). If that was just a typo when you entered your post, and you were really getting you cannot delete a directory, then something is seriously wrong, or you accidentally allowed a space to be inserted between .ssh and known_hosts. Personally, I'm going with you actually entered a space and the 'rm' command thought you wanted to delete the .ssh directory instead of $HOME/.ssh/known_hosts. I could be wrong, but using copy and paste to post actual Terminal screen output as well as the command you entered would be very helpful to anyone trying to provide useful information. In other words, help us help you.