SCP/SFTP Login scripting

I require connection to an old unix system with some quirky login techniques. After initial login it requires a carriage return to continue login to the server. I can complete the login correctly using the GUI and selecting "Enter" after the prompt. The scripting is pretty straightforward ... the login is the only hang. I have looked around exetnsively to find a solution but I myust be missing something simple.
Any help is appreciated. The info is below ... Ip and usernames redacted for obvious reasons.

Script_________
option batch off
option confirm off
open sftp://user:PWD@server -timeout=30
cd /***/japan_xmit
synchronize local T:\***/japan_xmit
close
exit

Log___________

. 2009-08-17 15:52:15.359 Looking up host "XXXXXX"
. 2009-08-17 15:52:15.718 Connecting to XXX.XXX.XXX.XXX port 22
. 2009-08-17 15:52:16.265 Server version: SSH-2.0-OpenSSH_5.2p1+sftpfilecontrol-v1.3
. 2009-08-17 15:52:16.265 Using SSH protocol version 2
. 2009-08-17 15:52:16.265 We claim version: SSH-2.0-WinSCP_release_4.2.1
! 2009-08-17 15:52:34.109 Using username "jparms".
. 2009-08-17 15:52:34.562 Prompt (5, SSH server authentication, Using keyboard-interactive authentication., Password: )
. 2009-08-17 15:52:34.562 Using stored password.
. 2009-08-17 15:52:34.734 Prompt (5, SSH server authentication, Using keyboard-interactive authentication., <no prompt>)
. 2009-08-17 15:52:34.734 Disconnected: Unable to authenticate

Forgot some info - Log from a successful GUI session

. 2009-08-17 16:36:13.437 Looking up host "XXXXXXX"
. 2009-08-17 16:36:13.796 Connecting to xxx.xxx.xxx.xxx port 22
. 2009-08-17 16:36:14.296 Server version: SSH-2.0-OpenSSH_5.2p1+sftpfilecontrol-v1.3
. 2009-08-17 16:36:14.296 Using SSH protocol version 2
. 2009-08-17 16:36:14.296 We claim version: SSH-2.0-WinSCP_release_4.2.1
. 2009-08-17 16:36:32.171 Host key fingerprint is:
. 2009-08-17 16:36:32.171 ssh-rsa 2048 _________________________________________

! 2009-08-17 16:36:32.609 Using username "username".
. 2009-08-17 16:36:33.312 Prompt (5, SSH server authentication, Using keyboard-interactive authentication., Password: )
. 2009-08-17 16:36:33.312 Using stored password.
. 2009-08-17 16:36:33.500 Prompt (5, SSH server authentication, Using keyboard-interactive authentication., <no prompt>)
<this is where I hit return to continue in the GUI version>
. 2009-08-17 16:36:36.171 Access granted
. 2009-08-17 16:36:36.359 Opened channel for session
. 2009-08-17 16:36:36.796 Started a shell/command
. 2009-08-17 16:36:36.796 Using SFTP protocol.
. 2009-08-17 16:36:36.796 Doing startup conversation with host.

Thanks for your post. This issue is being tracked already.