When local folder contains a .LNK file pointing to an UNC network path (e.g. \\server\share) and this network path is not connected, then WinSCP freezes, instead of asking for login credentials. Please add an option to disable following any .LNK content completely and treat them as any other files, or at least implement proper network login dialog.
Can you send me an email, so I can send you back a debug version of WinSCP to track the problem? Please include link back to this topic in your email. Also note in this topic that you have sent the email. Thanks.