Posted by Shane
If it does, you are in luck! Or your server (like mine hosting this blog) has FTP/FTPS disabled and only uses SSH2 for shell and file transfers, you are even more luck!
Working with the WordPress dev team in IRC (irc.freenode.net, #wordpress-dev) and after becoming frustrated that I couldn’t use the automatic plugin upgrade feature and the new core update feature that is coming out for version 2.7.x, I took it upon myself to start writing a SSH2 transfer protocol class file. Along with a few people in the channel (in particular DD32) we have completed this major task in getting it working. (Check the status of it’s progress in this trac ticket.)