Have you tried setting erase to ^H on both boxes?   Currently, you have it set 
to ^? on the BSD box and ^H on the linux box.  Excuse me if I am stating the 
obvious.

What shell are you using?  Bash is smart about this stuff and does the right 
thing no matter your stty settings.  Many other apps are not as smart as bash 
(e.g. that nasty korn shell).

Mike

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