The console window gets corrupt

Binary package hint: gnome-terminal

When viewing files (F3) in Midnight Commander using Ubuntu 7.10 the screen randomly shows corrupt display. I tried 'xterm' and 'konsole' and the issue never happens, so it isn't Midnight Commander, but rather gnome-terminal.

Ubuntu 6.10 never had such display issues. It might be worth mentioning that I upgraded (actually reinstalled) from 6.10 to 7.10. All partitions were reformatted, except the /home partition.

See screenshots to help explain the issue. The corrupt areas are actually form other 'virtual desktops'. I run Gnome with 4 virtual desktops. I even tried to run gnome-terminal via FVWM window manager instead of Gnome and the issue is still there.

ProblemType: Bug
Architecture: i386
Date: Tue Dec 11 10:43:57 2007
DistroRelease: Ubuntu 7.10
ExecutablePath: /usr/bin/gnome-terminal
NonfreeKernelModules: vmnet vmmon
Package: gnome-terminal 2.18.2-0ubuntu1
PackageArchitecture: i386
ProcCmdline: gnome-terminal
ProcCwd: /home/graemeg
ProcEnviron:
 PATH=/home/graemeg/bin:/usr/local/sbin:/usr/local/bin:/usr/sbin:/usr/bin:/sbin:/bin:/usr/games
 LANG=en_GB.UTF-8
 SHELL=/bin/bash
SourcePackage: gnome-terminal
Uname: Linux graemeg 2.6.22-14-generic #1 SMP Sun Oct 14 23:05:12 GMT 2007 i686 GNU/Linux