Unable to use net-ssh with jruby 1.7.4

I just got jruby-1.7.4. Here are the gems installed on my machine

*** LOCAL GEMS ***
bouncy-castle-java (1.5.0146.1)
bundler (1.2.4)
jruby-launcher (1.0.15 java)
jruby-openssl (0.8.2)
net-ssh (2.7.0)
rake (10.0.3)
rubygems-bundler (1.1.0)
rvm (

When I try to ssh into one of the servers, I get the following error (I
cross-checked several times that the same works on ruby 1.9.3)

Net::SSH.start(“server.xxx”, ‘username’) {|ssh| }
IO::EAGAINWaitReadable: Resource temporarily unavailable - errno
disabled; run with -Xerrno.backtrace=true to enable

Any pointers will be very helpful.