Mutt vs. kterm in RH 7.0-J

[Jonathan Byrne <jq@example.com>]

Is anybody running Red Hat 7 J?  If so, and you use mutt,
do you have any problems with it in kterm?  I've found that 
colors are ignored (it's all B&W), scrolling and screen
display are messed up such that the screen turns to 
gobbledygook after a bit, etc.  I recompiled mutt but
that changed nothing.  It seems to work OK in RXVT, though.

Anybody else hit this?

TIA,

Jonathan