Not a question rather sharing the recipe for getting freenx server working. There is too many irrelevant commands, all over the place, that confuse things.
2) yum install nx freenx-server
3) add "AllowUsers nx root " to /var/lib/nxserver/home/.ssh/sshd_config (not sure if this step is necessary. Restart ssh ofcourse.)
4) turn on "ENABLE_SSH_AUTHETICATION=1" in /etc/nxserver/node.conf
5) export PATH=$PATH:$HOME/bin:/usr/libexec/nx
6) setenforce 0
6) nxsetup --install --setup-nomachine-key (this will setup nx user etc but wont create client.id_dsa.key and so on. Also dont user --purge --clean option in the command. It destroys home/.ssh/known_hosts files.)
7) nxserver --start (this will create client.id_dsa.key and other related keys)
8) connect using nxclient from no machine. qtnx has problems apparently.
You dont need nxkeygen or copy client.id_dsa.key left, right, and, centre as mentioned in top google search links for freenx configuration.