That is because Gedit in Hardy isn't using GIO. It was ported to GIO for
Intrepid, and this works correctly now. In the meantime on Hardy, you
can use the GVFS fuse mount-point for your sftp locations, by navigating
to ~/.gvfs
** Changed in: gedit (Ubuntu)
Status: New => Fix Released
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Difficulties opening remote files (vfs)
https://bugs.launchpad.net/bugs/318949
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