I just updated my Cygwin to 1.5.13 and now in vim when I suspend (CTRL-Z or :suspend) then resume (fg), my term is corrupted such that term control sequences (cursor movement, redraw screen, etc) produce only garbage output.
What output exactly are you seeing? When I try to resume a Vim session, every key press is printed in reverse video rather than acting as a motion command (e.g. pressing jjj overwrites the first line of text in the Vim window with "jjj" rather than moving down three lines).
In fact, resuming other applications such is also problematic. If I background a "less" process (or a "man" command which implicitly invokes less), it dies when I try to resume it.
Are you also using the default Cygwin/DOS ANSI console?
-- Michael
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