Problems in Terminal after update

[ramdisk]

I have been using dapper for a while on several computers. I reinstalled from scratch to edgy on one last night. When I go to the terminal and get into vi I am noticing some differences. In dapper when I hit the insert key, it lights up with "insert" in red at the bottom of the vi screen. does not do so in edgy. When I use the arrow keys in insert mode in vi in dapper works fine. In edgy I get the letters A B C D when I try to use arrow keys. Any idea what the problem could be? Tried googleling and searching the forums but have hit my wits end for a saturday morning! was hoping someone else had a solution .. Thanx for you time

ramdisk