Transmit - Host key changed

If you are receiving the message "Host key changed" in Transmit read on.

Background: 

The FTP server's SSH identity changed and Transmit is getting confused.

Solution:

1. Quit Transmit
2. go to the Finder and select Go > Go to Folder
3. Enter : ~/.ssh/   
4. Open the file known_hosts in TextExit or TextWrangler
5. Find the line starting with cndmusic.net
6. Delete the line
7. Save the file
8. Quit TextExit or TextWrangler
9. Start Transmit