When term.el receives a "^[[K" erase-end-of-line the term-erase-in-line function inserts a new line. When variable term-scroll-show-maximum-output is set to t this can result in a blank line at the bottom of the buffer. This breaks programs such as less which won't display the top line. I can't see the purpose for the new-line. The following patch removes it. === modified file 'lisp/term.el' --- lisp/term.el 2012-01-26 02:32:56 +0000 +++ lisp/term.el 2012-04-04 05:26:53 +0000 @@ -3751,7 +3751,6 @@ ;; extra space when wrapped is false. (when wrapped (insert ? )) - (insert ?\n) (put-text-property saved-point (point) 'face 'default) (goto-char saved-point))))