As you are not getting a reply from the other host, and not an unknown OID error, check your firewall on both sides to make sure that is not blocking (tracepath is a good tool for this as well). Often when I am not getting an error having to do with the OID or authentication, the problem is with either the firewall or services. Make sure your snmp daemon is running, and you might want to run the check local on host2 to see if it works locally first.
The other suggestions are also something to always keep in the back of your mind. It is true that a lot of distros ship a "crippled" version of SNMP as a security measure. Anything potentially harmful is disabled, and it is up to the administrator to understand how to enable the functionality and authentication. Due to the potential for disaster if somebody got RW access via SNMP I think that the added work is a great idea. Keeps you from accidentally throwing the switch unless you know what you are doing.
$.02
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