Dynamic (-D) proxy using OpenSSH Cygwin.. not working..

I am using this command and arguments:

ssh -vv -D 8080 user@xxxxxxxx

--------------------------------------------------------------------

Here is my version..

$ ssh -V
OpenSSH_4.3p2, OpenSSL 0.9.8a 11 Oct 2005

--------------------------------------------------------------------

I can telnet to port 8080 on the client side and I see SSH is
listening:

mmarch@werkstation ~
$ telnet 127.0.0.1 8080
Trying 127.0.0.1...
Connected to 127.0.0.1.
Escape character is '^]'.

--------------------------------------------------------------------

I set both IE and Firefox to use this proxy : 127.0.0.1:8080 for all
protocols.

--------------------------------------------------------------------

When I try to browse.. the browser can't get to the site and below is
the debug in the SSH session:

march@remotehost$ debug1: Connection to port 8080 forwar
ding to socks port 0 requested.
debug2: fd 8 setting TCP_NODELAY
debug1: channel 2: new [dynamic-tcpip]
debug2: channel 2: pre_dynamic: have 0
debug2: channel 2: pre_dynamic: have 366
debug2: channel 2: zombie
debug2: channel 2: garbage collecting
debug1: channel 2: free: dynamic-tcpip, nchannels 3

--------------------------------------------------------------------

I have tried this on two XP boxes going to two different SSH hosts.

.

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