same for me on Dell Vostro 3300 with NVidia card and proprietary drivers
(319.32)

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https://bugs.launchpad.net/bugs/1016004

Title:
  gnome-terminal broken in 12.04 on ThinkPad T61 with Nvidia graphics

Status in “gnome-terminal” package in Ubuntu:
  Confirmed

Bug description:
  We are running Gnome 3 on 12.04.
  The gnome terminal output is kind of broken. When reaching the last line it 
somehow begins acting strange.
  For example typing ls you don't get any output unless you press Enter again. 
Lines are overlapping and stuff like that.
  Sometimes Ctrl+l helps, sometimes not.
  Difficult to describe but the shell is not usable in this state.
  I installed an alternative shell (terminator) to circumvent the problem and 
it seems to be working fine.

  Package version is 3.4.1.1-0ubuntu1

  Also it affects other applications, for instance emacs
  (/usr/bin/emacs23-x).

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