sftp not working on Snow Leopard (10.6.8)

[knlr]

(MFClient, hamberg.it.uu.se, 01/03/2012 18:15) Note status changed for fs <MFClientFS: 0x200094080> (hamberg.it.uu.se) to Waiting to Mount
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) Task launched OK
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) sshfs: cannot find sshnodelay.so
warning: ssh nodelay workaround disabled
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: Reading configuration data /etc/ssh_config
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: Connecting to hamberg.it.uu.se [130.238.18.44] port 22.
debug1: Connection established.
debug1: identity file /Users/knut/.ssh/id_rsa type -1
debug1: identity file /Users/knut/.ssh/id_dsa type -1
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: Remote protocol version 2.0, remote software version Sun_SSH_1.1.3
debug1: no match: Sun_SSH_1.1.3
debug1: Enabling compatibility mode for protocol 2.0
debug1: Local version string SSH-2.0-OpenSSH_5.2
debug1: SSH2_MSG_KEXINIT sent
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: SSH2_MSG_KEXINIT received
debug1: kex: server->client aes128-ctr hmac-md5 none
debug1: kex: client->server aes128-ctr hmac-md5 none
debug1: SSH2_MSG_KEX_DH_GEX_REQUEST(1024<1024<8192) sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_GROUP
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: SSH2_MSG_KEX_DH_GEX_INIT sent
debug1: expecting SSH2_MSG_KEX_DH_GEX_REPLY
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: Host 'hamberg.it.uu.se' is known and matches the RSA host key.
debug1: Found key in /Users/knut/.ssh/known_hosts:76
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: ssh_rsa_verify: signature correct
debug1: SSH2_MSG_NEWKEYS sent
debug1: expecting SSH2_MSG_NEWKEYS
debug1: SSH2_MSG_NEWKEYS received
debug1: SSH2_MSG_SERVICE_REQUEST sent
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: SSH2_MSG_SERVICE_ACCEPT received
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: Authentications that can continue: gssapi-keyex,gssapi-with-mic,publickey,password,keyboard-interactive
debug1: Next authentication method: publickey
debug1: Trying private key: /Users/knut/.ssh/id_rsa
debug1: Trying private key: /Users/knut/.ssh/id_dsa
debug1: Next authentication method: keyboard-interactive
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: read_passphrase: can't open /dev/tty: Device not configured
debug1: permanently_drop_suid: 502
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: Authentication succeeded (keyboard-interactive).
debug1: channel 0: new [client-session]
debug1: Entering interactive session.
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) debug1: Sending subsystem: sftp
(MFClient, hamberg.it.uu.se, 01/03/2012 18:15) Note status changed for fs <MFClientFS: 0x200094080> (hamberg.it.uu.se) to Mounted
(SSHServerFS, hamberg.it.uu.se, 01/03/2012 18:15) fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument
fuse: writing device: Invalid argument