My most recent Archlinux installation somehow has a conflict between Eterm and zsh, I found that some applications like mc, vim and mp3blaster do not pick up the arrow keys, even when using zkbd. They send an ABCD and some escape sequence garbage.
By setting the TERM variable to xterm-color the problem was fixed. To not mess up the TERM variable in the console one could put this code in .zshrc:
if [[ $TERM == "Eterm" ]]; then
--Gilneas, 2006 Aug 11