SFTP not working right

Hey, So I just got espresso and thought great I have some php code to edit lets do it with espresso vs my usually textmate + Transmit. Oh god..

Since it was a quick edit and i wanted to see how the SFTP worked I decided to edited the file LIVE on the server. Made the edits and hit save. Closed the file and tested it out, nothing loaded.. weird, check in the server tab/area and it showed the file size as 0! GAH! Not only did my changes not get saved, the whole file is now gone!
So i say fine, I will load a local backup I have and upload it using espresso. Nope, it says I dont have the proper permissions on the server. And weird that after the error on the status screen it shows a nice green check mark, which i guess is wrong. I check to see if something is wrong, but the file permissions server side is setup right and when I move the file over using transmit using SFTP it moves no problem and replaces it (same user login and everything).

I dont know if somewhere i have a setting wrong or this is a known bug, seems like the FTP side of the software is still a work in progress =|
If its a bug I hope it gets fixed soon as a key part of the app is missing. The ability to work in one area I think is great. If I have some setting wrong, well, I guess I just need to fix the bug, myself.