I've had similar difficulties with scp. I believe the issue is related to my sftp configuration, but I find it interesting your experiencing the same issue.
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Mike
I understand that, didn't look closely at the previous posters example. While in Dev mode and in shell I attempt to scp to my server with valid credentials and get a timeout after the password challenge. I can ssh to the server just fine, but scp fails. I suspect an issue with my sftp config.
Scp -dddd ? I'll give it a try. /var/log a safe bet for sftp logs?
Thanks