> If you look at the texconfig, it uses the dialog program
> (atleast on Linux and BSD). So, it seems you have not defined
> your TERM environment variable. Try xterm or vt100, depending on
> what kind of terminal (emulator) you use.
texconfig ignores the environment variable $TERM (and sets TERM=generic
for the dialog call) if it decides to use its own dialog program. That
only works, however, if the terminfo file $TEXMFMAIN/texconfig/g/generic
is in its place.
On a FreeBSD or Linux system, texconfig uses the system's /usr/bin/dialog
(if it exists) and does not use its own "generic" terminal settings.