I'm afraid to tell you that there's nothing wrong with babel, there's something wrong with your ssh.
If you don't get it running and you don't wanna spend more time on that issue, you might want to try FTP out instead to transfer de XML.
The problem with the libraries are totally normal as Babel need some stuff to run, you know :-)
You have to install the following packages:
http://www.openideas.info/wiki/index.php?title=Babel:QIG#Babel_Server_prerequisitesHope this helps
Manuel