diff --git a/rse/plugins/org.eclipse.rse.services.local/src/org/eclipse/rse/internal/services/local/shells/LocalShellOutputReader.java b/rse/plugins/org.eclipse.rse.services.local/src/org/eclipse/rse/internal/services/local/shells/LocalShellOutputReader.java
index 22587aa5328..ee3d9da4e99 100644
--- a/rse/plugins/org.eclipse.rse.services.local/src/org/eclipse/rse/internal/services/local/shells/LocalShellOutputReader.java
+++ b/rse/plugins/org.eclipse.rse.services.local/src/org/eclipse/rse/internal/services/local/shells/LocalShellOutputReader.java
@@ -19,6 +19,7 @@ package org.eclipse.rse.internal.services.local.shells;
 import java.io.BufferedReader;
 import java.io.IOException;
 
+import org.eclipse.rse.services.local.Activator;
 import org.eclipse.rse.services.shells.AbstractHostShellOutputReader;
 import org.eclipse.rse.services.shells.IHostShell;
 import org.eclipse.rse.services.shells.IHostShellOutputReader;
@@ -30,13 +31,15 @@ import org.eclipse.rse.services.shells.IHostShellOutputReader;
 public class LocalShellOutputReader extends AbstractHostShellOutputReader implements IHostShellOutputReader
 {
 	protected BufferedReader _reader;
+	private String fPromptChars = ">$%#]"; //Characters we accept as the end of a prompt //$NON-NLS-1$;
 
+	
 	public LocalShellOutputReader(IHostShell hostShell, BufferedReader reader, boolean isErrorReader)
 	{
 		super(hostShell, isErrorReader);
 		_reader = reader;
 	}
-	
+	/*
 	protected Object internalReadLine()
 	{
 		StringBuffer theLine = new StringBuffer();
@@ -129,7 +132,107 @@ public class LocalShellOutputReader extends AbstractHostShellOutputReader implem
 
 		return theLine.toString();
 	}
+*/
+	protected Object internalReadLine() {
+		if (_reader == null) {
+			//Our workaround sets the stderr reader to null, so we never give any stderr output.
+			//TODO Check if ssh supports some method of having separate stdout and stderr streams
+			return null;
+		}
+		StringBuffer theLine = new StringBuffer();
+		StringBuffer theDebugLine = null;
+		theDebugLine = new StringBuffer();
+		int ch;
+		boolean done = false;
+		while (!done && !isFinished()) {
+			try {
+				ch = _reader.read();
+				switch (ch) {
+				case -1:
+				case 65535:
+					if (theLine.length() == 0) // End of Reader
+						return null;
+					done = true;
+					break;
+				case '\b': //backspace
+					if(theDebugLine!=null) theDebugLine.append((char)ch);
+					int len = theLine.length()-1;
+					if (len>=0) theLine.deleteCharAt(len);
+				case 13:
+					if(theDebugLine!=null) theDebugLine.append((char)ch);
+					break; // Carriage Return: dont append to the buffer
+				case 10:
+					if(theDebugLine!=null) theDebugLine.append((char)ch);
+					done = true; // Newline
+					break;
+				case 9:
+					//Tab: we count tabs at column 8
+					if(theDebugLine!=null) theDebugLine.append((char)ch);
+					int tabIndex = theLine.length() % 8;
+					while (tabIndex < 8) {
+						theLine.append(' ');
+						tabIndex++;
+					}
+					break;
+				default:
+					char tch = (char) ch;
+					if(theDebugLine!=null) theDebugLine.append(tch);
+					if (!Character.isISOControl(tch)) {
+						theLine.append(tch); // Any other character
+					} else if (ch == 27) {
+						// Escape: ignore next char too
+						int nch = _reader.read();
+						if (theDebugLine!=null) theDebugLine.append((char)nch);
+						if (nch == 91) {
+							//vt100 escape sequence: read until end-of-command (skip digits and semicolon)
+							//e.g. \x1b;13;m --> ignore the entire command, including the trailing m
+							do {
+								nch = _reader.read();
+								if (theDebugLine!=null) theDebugLine.append((char)nch);
+							} while (Character.isDigit((char)nch) || nch == ';');
+						}
+					}
+				}
 
+				// Check to see if the BufferedReader is still ready which means
+				// there are more characters
+				// in the Buffer...If not, then we assume it is waiting for
+				// input.
+				if (!done && !_reader.ready()) {
+					// wait to make sure -- max. 500 msec to wait for new chars 
+					// if we are not at a CRLF seems to be appropriate for the 
+					// Pipes and Threads in ssh.
+					long waitIncrement = 500;
+					// Check if we think we are at a prompt
+					int len = theLine.length()-1;
+					while (len>0 && Character.isSpaceChar(theLine.charAt(len))) {
+						len--;
+					}
+					if (len>=0 && fPromptChars.indexOf(theLine.charAt(len))>=0) {
+						waitIncrement = 5; //wait only 5 msec if we think it's a prompt
+					}
+					try {
+						Thread.sleep(waitIncrement);
+					} catch (InterruptedException e) {
+					}
+					if (!_reader.ready()) {
+						done = true;
+					}
+				}
+			} catch (IOException e) {
+				//FIXME it's dangerous to return null here since this will end
+				//our reader thread completely... the exception could just be
+				//temporary, and we should keep running!
+				Activator.getDefault().logException(e);
+				return null;
+			}
+		}
+		if (theDebugLine!=null) {
+			String debugLine = theDebugLine.toString();
+			debugLine.compareTo(""); //$NON-NLS-1$
+		}
+		return theLine.toString();
+	}
 
 
 }
\ No newline at end of file