Glad you found a solution Dave! I can't imagine having to develop in nano all day.
Another good option for Windows is Notepad++. If you already have a favorite editor but it doesn't support SFTP then you can use FileZilla for transferring. FileZilla can be setup so that when you change a file mirrored on your local machine it will automatically prompt you to transfer it up to the server.
On Macs my favorite is the Coda2 app.
There are lots of solutions out there. Any editor that supports SFTP will do the trick.