One last note, after a bit more reading through theads here, I found it coincidental that the exception message that I am seeing sporadically is the same one mentioned in the 3rd post on this thread:
http://sshnet.codeplex.com/discussions/429447
Sorry if this deviates from the original thread too far, I can create another if you like. It could very well be that this is a 3.5 issue only.
Thank You