This bug is happening to me too. Not sure if this helps, but this is the last of what the log file reported before hanging. As mentioned before, this was working perfectly in the last version 3.8.2:
. 2007-05-10 08:23:51.600 Copying 9 files/directories to remote directory "/tank/docs/Basonge/Cookies/"
. 2007-05-10 08:23:51.600 PrTime: Yes; PrRO: Yes; Rght: rw-r--r--; PrR: No (Yes); FnCs: N; RIC: 01; Resume: S (102400); CalcS: No; Mask: *.*
. 2007-05-10 08:23:51.600 TM: M; ClAr: No; ExclM(No):
. 2007-05-10 08:23:51.600 AscM: *.*html; *.htm; *.txt; *.php*; *.cgi; *.c; *.cpp; *.h; *.pas; *.bas; *.tex; *.pl; .htaccess; *.xtml; *.css; *.cfg; *.ini; *.sh; *.xml
. 2007-05-10 08:23:51.600 File: "C:\Documents and Settings\Basonge\Cookies\basonge@feeds.feedburner[1].txt"
. 2007-05-10 08:23:51.600 Copying "C:\Documents and Settings\Basonge\Cookies\basonge@feeds.feedburner[1].txt" to remote directory started.
. 2007-05-10 08:23:51.600 Ascii transfer mode selected.
. 2007-05-10 08:23:51.600 Opening remote file.
> 2007-05-10 08:23:51.600 Type: SSH_FXP_OPEN, Size: 83, Number: 8674307
< 2007-05-10 08:23:51.600 Type: SSH_FXP_HANDLE, Size: 13, Number: 8674307
> 2007-05-10 08:23:51.600 Type: SSH_FXP_WRITE, Size: 131, Number: 8674822
> 2007-05-10 08:23:51.600 Type: SSH_FXP_CLOSE, Size: 13, Number: 8675076
< 2007-05-10 08:23:51.600 Type: SSH_FXP_STATUS, Size: 24, Number: 8674822
< 2007-05-10 08:23:51.600 Status/error code: 0
> 2007-05-10 08:23:51.600 Type: SSH_FXP_SETSTAT, Size: 79, Number: 8674569