Strange behaviour in completion when prompt is colorized

["Gowtham M" <gowthamgowtham@xxxxxxxxx>]

Hi, While completing commands/filenames. zsh is inserting some spaces on 
the command-line. However, it lists down the possible matches also... How can
I make it not insert these annoying spaces?

For example, if I type pdf at the prompt and hit TAB,
~> pdf<TAB>

The result is:

~> pdf              _<-- The cursor is now here!
pdf2dsc      pdfetex      pdfinfo      pdfopt       pdftops                 
pdf2ps       pdfevirtex   pdfinitex    pdfs@        pdftotext               
pdfeinitex   pdffonts     pdfjadetex   pdftex       pdfvirtex               
pdfelatex    pdfimages    pdflatex     pdftopbm     pdfxmltex


This is happening only if I add colors to my prompt.
PS1="$fg[default]$fg[red]%c$fg[default]> "

I was using zsh 4.0.7 but this is same with zsh 4.3.6

Thanks
Gowtham