Update: It has been pointed out to me that this problem is worse with a bigger terminal window size. With a full screen terminal window (for me that was 186x55) running the PuTTY version from Ubuntu 12.04 under Ubuntu 13.10, it also malfunctions.
So I suppose that the version of PuTTY from Ubuntu 12.04 is better at masking the underlying problem but the problem remains somewhere.
Update: It has been pointed out to me that this problem is worse with a bigger terminal window size. With a full screen terminal window (for me that was 186x55) running the PuTTY version from Ubuntu 12.04 under Ubuntu 13.10, it also malfunctions.
So I suppose that the version of PuTTY from Ubuntu 12.04 is better at masking the underlying problem but the problem remains somewhere.