Strange problem... . I am using Red Hat Enterprise Linux AS release 4 with KDE GUI. I am using Konsole for my terminal. When I type long command instead of wrapping to a new line it wraps back onto the same line not even close to the edge of the terminal, and overwrites my prompt instead. If I continue typing sequential wrapping is normal. I tried different schemas and terminal emulation, but all the same. Any ideas?
Illustration:
prompt>aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
then if I continue typing it wraps around and becomes:
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

and if I still continue typing it wraps around on a new line:
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

What I expect:
prompt>aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa
aaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaa

That's weird. I did not get such an effect in Konsole on my box. Try Xterm and see if that is not better. Try resizing the window that Konsole is in.

I figure out my problem. I have colored prompt, and I used as a template standard .bashrc taken from the web. In which blue defined as BLUE='\e[0;34m' and no color as NC=\e[0m', and then I use for prompt definition something like this:

PS1="${BLUE}\h:\${PWD}>>"

To fix the problem I redefined colors as:

BLUE='\[\e[0;34m\]'
NC=\[\e[0m\]'

and this fixed the problem. I am too lazy to find out what was wrong before and what is fixed later. But I'd suggest to anybody to use color prompts at least when you are root. I use red color prompt when I am 'rooting' on my computer, and it makes me more cautious when I am trying to do something radical.