Include also the output of a ssh command connecting to the remote machine to show the authentication interaction.

If you know how to do it, tracing the script at the OS level with truss would also help (is it called "tusc" for HP-UX?). In order to not reveal your password use an incorrect one... unless you can set up a testing account with a dummy password on the server just for that.

Send everything directly to me by email or attach it to the bug report in rt.cpan.org.

And BTW, can you check also version 1.37_06? Maybe I have introduced some regression on the last release.