dynamic DNS issues - invalid TSIG key

[Noah]

FreeBSD-4.9-STABLE on server side
bind-9.2.3

okay I am trying to set up dynamic DNS to bind on a FreeBSD box.  I have admin
on both client and server side.  the client is a redhat-8.0 machine with ISC
DHCP installed.

I verified the spelling of the keyname on both the client and server config
files.  and re-cut and pasted the key in both the client and server
configuration files.  

right now the client side is complaining of an invalid TSIG key.  The keys are
cut and Pasted and fomatted properly in each configuration file.  so I am at a
loss as to what to check next.

I have attached the error message.  I changed the hostnames and IP addresses
to protect the inocent - <> are added to clarify what I did.

--- snip ---

Jun 12 14:45:44 <hostname> dhclient: if IN A <hostname.domain.com>. rrset
doesn't exist add 3600 IN A <hostname.domain.com>. <10.2.1.1> add 3600 IN TXT
<hostname.domain.com>. "<key_stuff>": invalid TSIG key.

--- snip --- 

I am following the forwarding tutorial at:
http://ops.ietf.org/dns/dynupd/secure-ddns-howto.html#forward

so the configuration on the client side looks like this - 

--- /etc/dhclient-eth0.conf ----

send fqdn.fqdn "<hostname.domain.com>.";
send fqdn.encoded on;
send fqdn.server-update off;

key <hostname.domain.com>. {
    algorithm HMAC-MD5;
    secret "<key>";
}

zone <domain.com> {
    key "<hostname.domain.com>.";
}

interface "eth0" {
    send host-name "<hostname>";
    send dhcp-client-identifier <mac_address>;
    send dhcp-lease-time 3600;
    prepend domain-name-servers 127.0.0.1;
    request subnet-mask, broadcast-address, time-offset, routers,
            domain-name, domain-name-servers, host-name;
    require subnet-mask, domain-name-servers;
    script "/sbin/dhclient-script";
}

--- /etc/dhclient-eth0.conf ----


and here are the modfifications on the server side.  just the snippets that
are relevant to this configuration.  the file is fairly large.

--- /etc/namedb/named.conf ----

key <hostname.domain.com>. {
   algorithm HMAC-MD5;
   secret "<key>";
};

...

zone "<domain.com>" in {
  type master;
  file "zones/<domain.com>";
  allow-transfer { <10.2.2.1>; <10.2.2.2>; };
  allow-query { any; };
  allow-update { none; };
  notify yes;
  update-policy {
        grant <hostname.domain.com>. name <hostname.domain.com>. A TXT;
        grant <hostname.domain.com>. name <hostname2.domain.com>. A TXT;
        grant * self * A TXT;
  };
};

--- /etc/namedb/named.conf ---


clues please?

cheers,

Noah