Yes, I'm using Putty from a Windows box and the same happens on the Terminal
app on Mac OS X.
The version of Putty I'm using is 0.60. In regards to SSH on my Karmic box:
$ dpkg -l |grep openssh
ii openssh-client 1:5.1p1-6ubuntu2
secure shell client, an rlogin/rsh/rcp repla
ii openssh-server 1:5.1p1-6ubuntu2
secure shell server, an rshd replacement
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X11 forwarding via SSH does not work after upgrade to karmic
https://bugs.launchpad.net/bugs/434799
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