It complains about the invalid encoding and then connects just fine. The only clue I have is that FileZilla on OSX is able to connect whenever I set it up to use a non-existant encoding.
#CANT SSH ON MAC SOFTWARE#
Same with SFTP: WinSCP works just fine, command line SCP or any SFTP software like CyberDuck doesn't work at all. Now I just found out that I can ssh into it using PuTTY from a Windows (XP) box just fine (no Linux machines here, sadly) but somehow when I'm on a mac, ssh doesn't accept my password. I'm at work right now and my colleagues prepared a Debian server for me and left.