There were a number of things that seemed to break with the upgrade to Snow Leopard. The latest is my ability to deploy Rails application using Capistrano. For some reason, the SSH connection would hang. Looks like this was fixed today with the 2.0.15 release of net-ssh.
To get things working again, just update net-ssh:
$ sudo gem update net-ssh
Updating installed gems
Updating net-ssh
Successfully installed net-ssh-2.0.15
Gems updated: net-sshDeployments work like a charm.
