Hebrew filename display as gibberish

Hebrew filenames displays like the following line
The linux box is setup with Hebrew support. PuTTY's SSH session to that box shows valid filenames when running ls.
How can I fix this?
Thanks!

What is your SSH/SFTP server? OpenSSH?

Also see FAQ.

Also seeing this same phenomenon, connecting to OpenSSH server on a Debian 3.1 machine. The files I'm accessing are on a mounted SMB share from a 3rd machine. The third machine is a plain-vanilla XP, and the mount options are

Screenshot:

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The above-described behavior occurs with 'Server supports UTF-8' set to on. If I set it to off, I don't even see the files - I get an "error with directory listing" message.

It is most probably that your server report files in non-UTF-8 encoding. Can you mail me a log file at debug 2 log level?