SSH2 RSA Padding bug - true or false?

lnx.kid wrote:

<snip>
Server version: SSH-2.0-OpenSSH_3.1p1
We believe remote version has SSH2 RSA padding bug
</snip>

Now, the 'We believe....' part is what has me concerned....should I be? Where can I find more info on the 'SSH2 RSA padding bug' (hopefully a fix) and how is WinSCP determining that my server is vulnerable?

Versions below 3.3 of OpenSSH require SSH2 RSA signatures to be padded with zero bytes to the same length as the RSA key modulus. The SSH2 draft specification says that an unpadded signature MUST be accepted, so this is a bug. A typical symptom of this problem is that PuTTY mysteriously fails RSA authentication once in every few hundred attempts, and falls back to passwords.

If this bug is detected, PuTTY will pad its signatures in the way OpenSSH expects. If this bug is enabled when talking to a correct server, it is likely that no damage will be done, since correct servers usually still accept padded signatures because they're used to talking to OpenSSH.

This is an SSH2-specific bug.