zsh's command line-editor fouls up (system P5/Linux 2.0.0)

[veliath@xxxxxxxxxxxxxxxx]

Hello,
I have problems with the command-line editor for the "zsh".
If say I do this:
	ls -al
and then
	TERM=vt100

using the Esc-k-k combination givew me
	Tls -al
	^(from the last command entered)

Worse, editing is a real pain because the cursor is not placed over
the character being edited. I have had this prolem with version 2.6
and the newer 3.0

Could someone tell me if this is a known bug - I feel it must be. How
could I fix this.

I really like the zsh and I don't want to move to the "bash".

Thank you,
veliath@jasmine