According to Ian White:
That just lets me edit files that I open via the transmit window, right? I was hoping for a solution where I treat the remote side like the filesystem, i.e. open tm on a folder.
I'd recommend using a version control tool instead of modifying files on the fly. My personal preference goes to Mercurial[1] but any of the available systems would do (heck, even cvs would. Hmmm maybe not :-))
----- [1] http://selenic.com/mercurial/