SSH XForwarding fails – xauth bad display name

I'm trying to setup XForwarding over ssh, but it fails. The same result happens whether I use the argument -X or -Y for ssh. The error I get.

a@ASUS-N53SM:~$ ssh -X -p 6623 pinker@192.168.0.200
pinker@192.168.0.200's password: 
Last login: Sun Feb  2 18:42:08 2014 from 192.168.0.201
/usr/bin/xauth: (stdin):1:  bad display name "pinker-server:10.0" in "remove" command
/usr/bin/xauth: (stdin):2:  bad display name "pinker-server:10.0" in "add" command
xdpyinfo:  unable to open display "pinker-server:10.0".

In the client file ~/.ssh/config

ForwardX11 yes

In the client file /etc/ssh/ssh_config (comments removed).

Host *
ForwardX11 yes
ForwardX11Trusted yes
SendEnv LANG LC_*
HashKnownHosts yes
GSSAPIAuthentication yes 
GSSAPIDelegateCredentials no

In the server file /etc/ssh/sshd_config (comments removed).

Port 6623
Port 6624
Port 6625
Protocol 2
HostKey /etc/ssh/ssh_host_rsa_key
HostKey /etc/ssh/ssh_host_dsa_key
HostKey /etc/ssh/ssh_host_ecdsa_key
UsePrivilegeSeparation yes
KeyRegenerationInterval 3600
ServerKeyBits 768
SyslogFacility AUTH
LogLevel INFO
LoginGraceTime 120
PermitRootLogin yes
StrictModes yes
RSAAuthentication yes
PubkeyAuthentication yes
IgnoreRhosts yes
RhostsRSAAuthentication no
HostbasedAuthentication no
PermitEmptyPasswords no
ChallengeResponseAuthentication no
X11Forwarding yes
X11DisplayOffset 10
PrintMotd no
PrintLastLog yes
TCPKeepAlive yes
AcceptEnv LANG LC_*
Subsystem sftp /usr/lib/openssh/sftp-server
UsePAM yes
X11UseLocalhost no
AllowTcpForwarding yes

I found this similar Question, but none of the answers work.

UPDATE:

On the server, I added to the file /etc/hosts.

127.0.0.1       pinker-server

On the server, I installed the package xbase-clients. On the ssh connection echo $DISPLAY outputs :0.0.

Now I'm getting a new error.

X11 connection rejected because of wrong authentication.
X11 connection rejected because of wrong authentication.
X11 connection rejected because of wrong authentication.
X11 connection rejected because of wrong authentication.
xdpyinfo:  unable to open display "pinker-server:10.0".