This came up long ago, but I've lost the mail, and the problem remains. When printing a line of text containing vt100 escapes and tabs, the tab stops are not set correctly. After running reset, they are.
Repro: Open a new xterm and run printf "\e[32m\tgreen\e[0m\n". Observe four space indent. Run reset and run printf again. Observe eight spaces. One of the magic OXTABS bits needs to be adjusted? I thought that was the proposed resolution?