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Hi, i'm getting desperate

Situation description:
I have 2 computers, they are connected over the switch .

Computer A has:
ip 192.168.0.6 name hostA
there is running SSH server
server part of my TCP/Ip application, listening on port 36000

Computer B has:
ip 192.168.0.14 name hostB
there is running SSH client
client part of my TCP/IP application, sending data on port 36000

I create on host B SSH tunnel with port forwarding by command
ssh -L 34000:hostA:36000 hostB

Afterwards i connect from my client application on ip 127.0.0.1 and port 34000
Until here everything is OK.

Problem description :
I wanted to be sure that my datas are encrypted, so i installed on hostB network monitor, called Ethereal and i can see all my datas, i mean not encrypted as they are going from 192.168.0.14 to 192.168.0.6
Could it be possible that net monitor capture data before the "get into" tunnel and they are encrypted?
Or where else could be the problem?

I also tryed to run net monitor on 3rd computer, but all computers are connected to the switch, so i can not capture communication betwean hostA and host B.

Thanks for help,
Michal