I've tried it, and Totem does indeed fail at loading a directory loaded over an SSH connection (using either ssh:// or sftp://), although it works with files over SSH, and files and directories over other VFSes such as SMB. Confirming.
** Changed in: totem (Ubuntu)
Status: Unconfirmed => Confirmed
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Totem doesn't handle sftp directory properly
https://launchpad.net/bugs/41437
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