I've found that the more I refine a question, the better help I get.
So, to make the question as complete as possible, I'm providing this C# WPF solution created in Visual Studio 2010 Beta 2.
This solution exactly reproduces the problem I'm having, as I try to capture output from ssh.exe using the System.Diagnostics.Process object.
To reproduce this problem, right in front of your own eyes, you'll need two things: (1) An installation of Visual Studio 2010 Beta 2. (2) The IP address of a Linux Server that allows incoming SSH connections.
To modify this code to work, you'll probably need to be just as much a hacker as much as you are a programmer. The code is as complete as I know how to make it. It will monitor the output of almost any other command-line utility (except for ssh.exe).
If you click on my name, you can see all the previous ways I've asked this question. If you have a suggestion, but are unable to download and reproduce this problem, please submit you answers to one of those previous question instead:
I'd like to reserve this question to those who have the prerequisites to reproduce the problem, and answer it by showing how they made it work (with certain modifications).