Index: wp-admin/includes/class-wp-filesystem-ssh2.php
===================================================================
--- wp-admin/includes/class-wp-filesystem-ssh2.php	(revision 11549)
+++ wp-admin/includes/class-wp-filesystem-ssh2.php	(working copy)
@@ -33,6 +33,7 @@
  * Restart Apache!
  * Check phpinfo() streams to confirm that: ssh2.shell, ssh2.exec, ssh2.tunnel, ssh2.scp, ssh2.sftp  exist.
  *
+ * As of WordPress 2.8, the PHP must be complied with '--enable-sockets' for this to work.
  *
  * @since 2.7
  * @package WordPress
Index: wp-admin/includes/file.php
===================================================================
--- wp-admin/includes/file.php	(revision 11549)
+++ wp-admin/includes/file.php	(working copy)
@@ -781,7 +781,7 @@
 <?php if ( 'ftpext' == $type ) : ?>
 <br /><label><input id="ftps" name="connection_type" type="radio" value="ftps" <?php checked('ftps', $connection_type); if ( defined('FTP_SSL') || defined('FTP_SSH') ) echo ' disabled="disabled"';  ?>/> <?php _e('FTPS (SSL)') ?></label>
 <?php endif; ?>
-<?php if ( extension_loaded('ssh2') ) : ?>
+<?php if ( extension_loaded('ssh2') && extension_loaded('sockets') ) : ?>
 <br /><label><input id="ssh" name="connection_type" type="radio" value="ssh" <?php checked('ssh', $connection_type);  if ( defined('FTP_SSL') || defined('FTP_SSH') ) echo ' disabled="disabled"'; ?>/> <?php _e('SSH') ?></label>
 <?php endif; ?>
 </fieldset>