Josh,
First, I'd like to thank you for being such a loyal user over the years. It is support from people like you that have made AbsoluteTelnet/SSH possible.
I'd like to get you to install the latest development version of Absolute, which includes a new tracing feature that may help us track the problem down.
www.celestialsoftware.net/telnet/AbsoluteTelnet8.27RC39.exe
Install from the above link, then go to Options->Properties->Connection->SSH2->Options. Enable the tracing option, then restart your connection. You'll see a lot of output come to the screen. Select/Copy all of that data and email it to me for review. (bpence at celestialsoftware.net)