Yeah, plink is not a good tool for this. From the PuTTY docs:
[quote]Plink (PuTTY Link) is a command-line connection tool similar to UNIX ssh. It is mostly used for automated operations, such as making CVS access a repository on a remote server.
Plink is probably not what you want if you want to run an interactive session in a console window.
The output sent by the server will be written straight to your command prompt window, which will most likely not interpret terminal control codes in the way the server expects it to. So if you run any full-screen applications, for example, you can expect to see strange characters appearing in your window. Interactive connections like this are not the main point of Plink.[/quote]
Just use PuTTY proper (see the Dreamhost Wiki Guide to using PuTTY) , and you will be fine!