I have the same problem on my workstation. It seems to somehow be caused by Nvidia drivers. Back in time, it was working all fine, until the drivers version 4469 (3319 used to work fine).
For some reason, when I use the latest nvidia driver, it mess up my stty output with green/blue/red block crap. I never found a way to fix this, I believe Nvidia put some buggy code in their latest drivers.
Now I use "nv" drivers and it works fine... but it sucks when it's time to do 3D.
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