SSH from Windows hangs when using insert mode in vim on Dreamhost: Why?

I have SSH set up using Cygwin on Windows XP SP3 to Dreamhost. It works fine except that when I edit a file with vi and use insert mode (eg press 'i' and type in some stuff). I then try and hit escape and ZZ to save/exit and it hangs instead. My edits aren't saved and I have to kill the session (locally) and kill the vi process on Dreamhost.

This is highly annoying. It's not reliable either. Sometimes it does work.

Also, this happens with PuTTY too.

From serverfault cletus

• I've had this sort of issue over SSH before, could it be related to software flow control? Try hitting Ctrl-Q (issuing an XON signal) to verify.

  cletus : I'm aware of the ctrl-s/strl-q thing. I'm pretty sure that's not it.
  From Andy