bzr crashes when trying to update sftp:// tree after sshing into box

[Jesse Michael]

I'm getting an IOError from bzr when I ssh into a host and then run "bzr up" against a sftp:// repository--

jesse@box:~/devel/foobar$ bzr up
Tree is up to date at revision 260 of branch sftp://host.name/path/to/repository
jesse@box:~/devel/foobar$ ssh jesse@localhost
Linux box 2.6.32-22-generic #36-Ubuntu SMP Thu Jun 3 22:02:19 UTC 2010 i686 GNU/Linux
Ubuntu 10.04 LTS

Welcome to Ubuntu!
 * Documentation: https://help.ubuntu.com/

No mail.
Last login: Mon Jun 7 09:28:13 2010 from localhost
jesse@box:~$ cd devel/foobar
jesse@box:~/devel/foobar$ bzr up
bzr: ERROR: gnomekeyring.IOError:

*** Bazaar has encountered an internal error. This probably indicates a
    bug in Bazaar. You can help us fix it by filing a bug report at
        https://bugs.launchpad.net/bzr/+filebug
    attaching the crash file
        /home/jesse/.cache/crash/bzr-20100607162849-14236.crash
    and including a description of the problem.

    The crash file is plain text and you can inspect or edit it to remove
    private information.
jesse@box:~/devel/foobar$

I don't get this behavior from bzr+ssh:// trees, but can duplicate it on another machine with sftp://.