This bug has been opened here: https://bugzilla.ubuntu.com/show_bug.cgi?id=15375

"In the past, I have successfully used Rhythmbox to play music 
from a server which I am accessing via SSH.  Although I do not
fully recall the details of how I did this, I am trying to do it 
now on a freshly updated Breezy installation.

Here are the steps I followed:

1) From the Panel I select Places -> Connect to Server
   Specifed SSH, etc. named the VFS folder "Loki" and 
   a folder with an "SSH" emblem shows up on my Desktop. 
   I can open this folder (I provided a password and 
   accept entering it into the keyring)
   I can double click music in this folder and play it with Totem.

2) Start Rhythmbox and select Music -> Import Folder
   A file dialog opens, but I can not navigate to the aforementioned 
   Loki folder because it does not show up in the Desktop folder as
   seen from the file dialog box.  The Desktop folder is in the 
   Bookmarks on the left side, but inside Desktop there is no folder
   named Loki.
   So I hit Ctrl-L to bring up the Location dialog box.  But what do
   I type?  I don't know the VFS URI and it is not provided even
   if I ask for "properties" of the Loki folder.  
   So I try to drag-and-drop the Loki folder icon on the Location
   field.  The text "x-nautilus-desktop:///Loki.volume pops into 
   the field.  I select "Open" and I get an error: "Could not 
   retreive information about the file. error accessing x-naut...
   Invalid URI.
   So I open the Loki folder and drag one of the music folders from
   the File Browser window into the Location field.  Viola, a sftp://... 
   path pops into the field.  This looks right, but alas, I get a 
   file not found error message because it seems that extra 
   characters, %0D and %0A, have been added to the path.  I try again
   and delete these two extra, invisible characters.  Now I get an
   error message: "The folder contents could not be displayed.  Cannot
   change to folder because it is not local"

Please make this possible.

   Gisli"