in Gnome Terminal in Ubuntu strange behaviour

Now that Ubuntu 10.04 is almost here I'd like to ask if Vim there
works by default in Gnome Terminal for anybody?
There is an issue in 9.10 that cursor keys produces ABCD symbols with
linefeeds instead of navigating around. This is very annoying and the
issue is here https://bugs.edge.launchpad.net/ubuntu/+source/vim/+bug/491615

However, it seems like it is not going to be fixed. Can anybody
confirm this?

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