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Sometimes when people are having problems with SSH-connections, we often hear "I can connect with Putty without problems". Maybe so, but it does not tell very much (almost nothing actually!) because a connection with Putty or a similar program is not tunneling and does not make use of port forwarding on the remote host. Putty simply creates a remote (and secure) shell on the client machine, and connects to the 'mysql' client program on the server. With Putty the MySQL client is the 'mysql' client on the remote server. With SQLyog SSH-tunnel the MySQL client is the client API that is compiled into SQLyog (and SJA). That is why port forwarding is needed and must be functional with SQLyog SSH-tunneling!