When mounting a drive with MacFusion, you’ll get the error that the remote host has disconnected. When you look at the log file, you notice that the error is actually in a shared lib: dyld: could not load inserted library: /Applications/Macfusion.app/Contents/PlugIns/ sshfs.mfplugin/Contents/Resources/sshnodelay.so.
To fix this, simply execute the following in your terminal:
mv /Applications/Macfusion.app/Contents/PlugIns/sshfs.mfplugin/Contents/Resources/sshnodelay.so /Applications/Macfusion.app/Contents/PlugIns/sshfs.mfplugin/Contents/Resources/sshnodelay.so.bak
This will prevent MacFusion from loading the offending shared lib. Everything works again :)