Amit, the lead developer and Google employee, has released the latest version of MacFUSE. MacFUSE is an AWESOME tool to let you mount remote filesystems over an ssh connection, among other things. If you haven't tried it, download it today. You'll probably want to try the MacFusion software instead of the sshfs which is also available from Amit, though it is unsupported. Since MacFUSE 0.4.0 was released so recently, there is a chance that MacFusion will exhibit unexpected behavior. If you are feeling bold, help out the projects and test them out, and always report your findings back to the community! :-)
UPDATE: Messages from the MacFUSE and MacFusion lists report that the two are indeed incompatible. The MacFusion team is very much on the ball so I bet a new compatible version will be released ASAP. Off Topic: This is a terrific thread about the .DS_Store files which Apple is using, how they can cause problems, and even how Cyberduck (one of my favorite programs) is stripping data without notice!