ansible devel can't communicate with ssh

ansible is on ubuntu 14.10, client is a vagrant ubuntu 12.04 machine

I don’t know how much more basic I can make an example.I have an ansible-test directory structured like this:

ansible.cfg that contains:

[defaults]

inventory = ./hosts.yml

host_vars/ubu.yml

currently host/group vars related to connections are not being picked
up, this is a known issue and there are a couple of patches that
address this on the review queue.