Comment 7 for bug 424648

The same issue from nautilus. Had issued command 'sftp 192.168.1.1 -vvv' in terminal (192.168.1.1 - is my router). The response is:
  Connecting to 192.168.1.1...
  admin@192.168.1.1's password:
  sh: /opt/libexec/sftp-server: not found
  Connection closed

SSH server on the router is actually dropbear. Seems that one should use some other sftp subsystem (according to sftp manual it would be 'sftp -s ... ', yet I just haven't figured out what to use)

Though, nevertheless scp is working ok (heh, why not):
$ > echo 'test' > test.out
$ > scp test.out admin@192.168.1.1:/tmp
admin@192.168.1.1's password:
test.out 100% 5 0.0KB/s 00:00