MathWorks support already said this is not supported, but I think it's worth a shot here.

My setup may be a little strange, but here it is:
I have a sshd service set up in cygwin on a 64bit windows server 2003. I login via ssh connection. Then I run the command beblow. Strangely, it hangs.

C:/PROGRA~1/MATLAB/R2007b/bin/matlab.exe -nosplash -nodesktop -nojvm

What's even stranger is that this does not happen if I run it in cygwin if I use Remote Desktop to connect; nor does it happen if I do exactly the same thing on 32bit windows machine