I can also confirm this for the current gnome-terminal from Karmic.
This makes me suspect it is not a bug in either of the two but in a
commonly used library (vte?).
My first hunch was that this may be a problem in vte, even more so after
going through the dependencies of gnome-terminal and xfce4-terminal.
But after reading through the vte bug tracker and confirming that this
problem also exists in xterm which does not use libvte, I came to the
conclusion it must be somewhere else.
I'll add gnome-terminal and xterm as being affected now although I don't
think the bug itself is in either of those packages.
** Also affects: xterm (Ubuntu)
Importance: Undecided
Status: New
** Also affects: gnome-terminal (Ubuntu)
Importance: Undecided
Status: New
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Cursor in terminal behaves badly with special characters present
https://bugs.launchpad.net/bugs/378668
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