I am running git daemon with the following command.
c:\\cygwin\\bin\\git daemon --reuseaddr --base-path=/cygdrive/S --export-all --verbose --enable=receive-pack
I had this same problem with server Ubuntu git daemon 1.7.3.2 and client Windows Msysgit 1.7.4. Downgraded Msysgit to 1.6.5.1 and the problem was resolved.