To the best of my knowledge the bug has not been fixed. It has been talked about, but not fixed. It's a tricky bug that I have worked on and will have to work on some more to get nailed down unless someone contributes.
I think I finally have a fix for this. I have the issue isolated into an app of it's own as to avoid contamination from SuperPuTTY code. I am in the middle of integrating this into SuperPuTTY now.
So, I never updated the thread, but my fix was not the right fix. I haven't had the time to sink into the project lately for a bug that is nearly impossible to fix in it's current state. When I have the time, I plan on working on it, but as of now, the bug still exists.