Hi Apreche,

Thank you for the report as well as the detailed instructions to reproduce the issue.  It's much appreciated.  I've tried to confirm the issue you are seeing but am unsuccessful in reproducing the bug.  I was able to follow your instructions completely up until step 11.  In step 11, when I right clicked on the file, Nautilus by default didn't give me an option to launch gvim to open the file.  I then decided to use the right-click->Open with Other Application ... which did allow me to select "GVim Text Editor".  However, that did not open the file on the remote server, it actually opened a new file locally :(  I guess that's a different bug I'll need to report.  I even played with right-click->Properties->Open With tab to get GVim to launch properly but still had no luck.  You mentioned you were able to reproduce this apart from using Nautilus, so I went ahead and tried opening/editing the file via the command line at Step 11 instead.  I issued the following:

gvim sftp://leann@leann//home/leann/bug.txt

I was able to edit the remote file just fine and save my changes.  The permissions (664) remained as they should.  I did not witness the permissions changing to 600 as you were able to produce.  I tried to issue the same type of command that you had documented (vim ~/.gvfs/sftp\ on\ remote/home/user/test.txt) at Step 11 but was unable to as my ~/.gvfs directory is empty.  I'll include some of the package information I have below just to confirm we have the same versions of packages?  Maybe there are some discrepancies which might account for why I'm unable to reproduce this issue?  If you have any other ideas for triggering this, please let me know and I'll give it a test.  I'll also see if I can have anyone else try and reproduce the issue as you've documented.

I'd like to add that there is a kernel patch that I was hoping to test to see if it would resolve this issue you are seeing bug since I am unable to reproduce the original bug, testing the patch doesn't make much sense.  

Thanks.

ogasawara@yoji:/$ lsb_release -rd
Description:	Ubuntu 8.04
Release:	8.04

ogasawara@yoji:~$ cat /proc/version_signature 
Ubuntu 2.6.24-16.30-generic

ogasawara@yoji:~$ apt-cache policy vim-gnome
vim-gnome:
  Installed: 1:7.1-138+1ubuntu3
  Candidate: 1:7.1-138+1ubuntu3
  Version table:
 *** 1:7.1-138+1ubuntu3 0
        500 http://archive.ubuntu.com hardy/main Packages
        100 /var/lib/dpkg/status

ogasawara@yoji:~$ apt-cache policy nautilus
nautilus:
  Installed: 1:2.22.2-0ubuntu4
  Candidate: 1:2.22.2-0ubuntu4
  Version table:
 *** 1:2.22.2-0ubuntu4 0
        500 http://archive.ubuntu.com hardy/main Packages
        100 /var/lib/dpkg/status

ogasawara@yoji:/$ apt-cache policy openssh-client
openssh-client:
  Installed: 1:4.7p1-8ubuntu1
  Candidate: 1:4.7p1-8ubuntu1
  Version table:
 *** 1:4.7p1-8ubuntu1 0
        500 http://archive.ubuntu.com hardy/main Packages
        100 /var/lib/dpkg/status

ogasawara@yoji:~$ apt-cache policy gvfs
gvfs:
  Installed: 0.2.3-0ubuntu5
  Candidate: 0.2.3-0ubuntu5
  Version table:
 *** 0.2.3-0ubuntu5 0
        500 http://mirrors.cat.pdx.edu hardy-updates/main Packages
        100 /var/lib/dpkg/status
     0.2.3-0ubuntu4 0
        500 http://archive.ubuntu.com hardy/main Packages