Regrettably, this appears to be a bug within sc_trans_linux itself and little can be done about it since sc_trans_linux is a closed-source, proprietary application.

The problem appears to be entirely sporadic -- sometimes the source connects successfully, and other times it fails with an invalid password error -- even if your password is correct.  The problem appears to manifest only on certain Linux distributions, and in our experience we have encountered it more often with older CentOS releases (pre-4.4), but this may just be coincidence.

The only workaround that we are aware of at this time is to switch to ices as your streaming source instead of sc_trans_linux.