*Some* progress has been made with konsole and ^C; Paul vdB has volunteered to look into it more closely, based on what builds on Dillon.
There are some interesting early results: if you swap bash for csh in the session, then ^C works just fine for csh. However, I tested and found that the funky short-file error message output from the C compiler still kills the output, so we're not particularly closer there. But it illustrates that the problem isn't *really* ^C (or possibly: not only ^C) but something else, probably in the way ptys are created and manipulated. [ade]
