If I try to mount a filesystem that is, on the remote, a symlink, I get an input/output error. This works with sshfs-2.2 e.g., on server: /symlink -> /home, and then I try mounting server:/symlink, this fails.
Have you tried mounting the filesystem with the follow_symlinks option enabled? It appears to work fine for me if that option is set.
Closing as works for me since the follow_symlinks option seems to work as expected.