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After a lot of googling and try and error I found this solution: manually generate a private key.
Make sure the following files are deleted:  xsibackup_id_rsa xsibackup_id_rsa.pem xsibackup_id_rsa.pub
Generate a private key: openssl genrsa -des3 -out xsibackup_id_rsa_pwd 1024
Remove the password: openssl rsa -in xsibackup_id_rsa_pwd -out xsibackup_id_rsa
Make sure it works: ./xsibackup --check-smtp=yourname@gmail.com --use-smtp=X