SFTP ReadDir Disconnect

Getting the following error with SFTP ReadDir. this only happens on one server so far.

  ReadDir:
DllDate: Aug 15 2013
ChilkatVersion: 9.4.1.42
UnlockPrefix: ***
Username: ***
Architecture: Little Endian; 32-bit
Language: Windows Perl
VerboseLogging: 0
SshVersion: SSH-2.0-SftpSSHD_1.4.31_Comments
SftpVersion: 3
handle: 494E56
getReadDirResponse:
  readChannelData_2:
    genRead_1:
      Received DISCONNECT message
      DisconnectReason: Failed to read binary packet data!
    --genRead_1
  --readChannelData_2
  Received SSH disconnect.
  disconnectCode: 2
  disconnectReason: Failed to read binary packet data!
  Failed to read SFTP packet.
--getReadDirResponse
Failed to read response to READDIR.
Failed.

--ReadDir