Terminal does not handle "special characters" properly (backspace, etc)

[jorgen@…]

When you use backspace or the arrow keys, the terminal prints blocks instead of
updating the input line like it should. The actual line is updated, so pressing
enter executes it like it should.
See ​http://daxxar.slask.no/images/backspace-block.png for an example. After
"Example: ", I entered - verbatim: 'f', 'o', 'o', <backspace>.
If you use the matchbox-keyboard (that has arrow up, down, etc) it does the
same. Getting it to redraw (using ^{L, resizing terminal, etcetera) makes it show
it like it should.}

[jorgen@…]

Screenshot of the problem

[jorgen@…]

This has been confirmed to occur both in qemu and normal, and by another user
(See ML). Assuming gterm2 needs to redraw after special chars?

[stefan@…]

We use a new terminal, mrxvt, in 2007.2 which replaces the old UI.

Please reopen this bug if this also happens with the new terminal to you.