Yes i see this problem in an xterm.

I also (still) have the appalling 'fails to unset cbreak' nonsense
when I hit ^Z at -More- when reading man pages.  more by itself is
ok which means that mail is failing to propogate the control signal
to more to allow more to clean up before suspend?  these problems do
only occur in the damned xterms, not console.

-j