Comment 34 for bug 84899

Had same problem. An Ubuntu 7.04 running in VMWare Fusion where connecting from my mac was extermely slow. Neither of the two proposed fixes works, however above fix for setting with setting a host name for the client worked. In addition, I found that instead of inserting the hostname of the client into /etc/hosts you can also add set the following in the config:

UseDNS no

I'm not sure how this affects the security, but my virtual machine with ubuntu is not online so it works for me.