Where does 'default' come from, as whether it gets recognized or not? I ended up installing ncurses into my home directory and mutt built perfectly. I reported this back the server admin and she said that after looking into it, ncurses on the server was indeed screwed. She said she reinstalled it, and when I tried building 1.3.28 just to try the server ncurses, it built fine, and mutt -v reports ncurses 5.2, but default is not recognized when it starts up. In the version I built from ncurses from my home dir, no problem.
Thanks. -Ken