Using DSM plugin on unencrypted server renders it useless

[nisses]

Using ARC4 1.0.0 (i belive previous versions reveal same bug in vnc server)
plugin with unencrypted server (ie. not running any DSM plugins, running in
unencrypted mode) renders it unconnectable. The problem exists in many
builds: pre-1.0, 1.0.0, 1.0.1 and 1.0.2 were checked during years. Windows
client and server were used. I'm not sure if 1.0.5 still behaves this way.
I'm not sure if it does behave this way for ALL keys (variations) that can
be used. I will provide my key if necessary (i need to switch to other key
first - from security reasons of course).

BTW does anyone use sf.net bugs tracker??