Downgrading to openssh 1:5.1p1-5ubuntu1 (Jaunty x86) solved the bug for me, so the issue is somewhere in applied patches between 1:5.1p1-5ubuntu1 (Jaunty) and 1:5.1p1-6ubuntu1 (Karmic) builds.
Downgrading to openssh 1:5.1p1-5ubuntu1 (Jaunty x86) solved the bug for me, so the issue is somewhere in applied patches between 1:5.1p1-5ubuntu1 (Jaunty) and 1:5.1p1-6ubuntu1 (Karmic) builds.