Comment 74 for bug 621927

I am aware of the work around, it's just that this 'bug' is only fixed when you use GDM or KDM. Xfce4-terminal should set the variable too, but it never happens. It's xterm by default, but even if you enter some garbage text, the $TERM variable will always be linux. I find it odd that this bug is marked as invalid for xfce4-terminal, while it's very apparent.
I think I'll just add 'export TERM=xterm' to my .bashrc or something.