Why doesn't the key combo Control C work when connected via SSH or telnet? Is this a limitation of the program or am I missing a configuration option somewhere?

I'm not an expert on this, but my guess is it might have something to do with the SSH/Telnet is emulating VT100 or Linux and need Ctrl+ key sequences for "native" Linux/Unix stuff, so you'll need to use ctrl+INS + Shift+INS for copy paste.