Coloured prompt mangles long input lines

[michal]

Configuration Information [Automatically generated, do not change]:
Machine: i386
OS: linux-gnu
Compiler: gcc
Compilation CFLAGS:  -DPROGRAM='bash' -DCONF_HOSTTYPE='i386' 
-DCONF_OSTYPE='linux-gnu' -DCONF_MACHTYPE='i386-redhat-linux-gnu' 
-DCONF_VENDOR='redhat' -DSHELL -DHAVE_CONFIG_H  -D_GNU_SOURCE 
-D_FILE_OFFSET_BITS=64  -I.  -I. -I./include -I./lib -I/usr/include -O2 
-march=i386 -mcpu=i686
uname output: Linux broucek.logix.cz 2.4.13-ac3 #2 Tue Nov 6 08:53:53 CET 2001 
i586 unknown
Machine Type: i386-redhat-linux-gnu

Bash Version: 2.05
Patch Level: 8
Release Status: release

Description:
        When PS1 is set to produce coloured output via ANSI escape
        sequences, then long lines (longer than screen width) are
        wrapped and rewrite the prompt itself. It behaves like there be
        '\r' at the end instead of '\n'

Repeat-By:
        $ export PS1='\e[1;31m\w\e[0m\$ '
        $ write looooooooong looooong line