Yes, I can confirm this bug as well.  I'm using Karmic Koala under
VMWare and it was really annoying that the keyboard shortcuts for job
control (ctrl-z) and yank text (ctrl-y) were reversed in emacs style
editors were reversed.  Just spent five hours researching it and was
relieved to find these posts which helped me devise a solution which
worked for me.  My VMWare image from thoughtpolice.co.uk was configured
with two initial keyboard layouts:  German (dead keys) and USA.  System
default was USA.  I added Canada / English, set it as the system default
then removed both the USA and German keyboard layouts.  Now the key
bindings for ctrl-y (yank text in emacs style editors) and ctrl-z (job
control) are working properly.  It goes without saying that this bug has
to get fixed.

-- 
ubuntu gnome-terminal - ignores current keyboard layout for shortcuts
https://bugs.launchpad.net/bugs/174832
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