Bash 4 cursor in my prompt

[Special Sauce]

From: anton
To: bug-bash@gnu.org
Subject: Cursor starts inside prompt

Configuration Information [Automatically generated, do not change]:
Machine: x86_64
OS: linux-gnu
Compiler: gcc
Compilation CFLAGS:  -DPROGRAM='bash' -DCONF_HOSTTYPE='x86_64' -
DCONF_OSTYPE='linux-gnu' -DCONF_MACHTYPE='x86_64-unknown-linux-gnu' -
DCONF_VENDOR='unknown' -DLOCALEDIR='/home/anton/share/locale' -
DPACKAGE='bash' -DSHELL -DHAVE_CONFIG_H   -I.  -I. -I./include -I./
lib   -g -O2
uname output: Linux nobby-nobbs 2.6.28-9-generic #31-Ubuntu SMP Wed
Mar 11 15:43:49 UTC 2009 x86_64 GNU/Linux
Machine Type: x86_64-unknown-linux-gnu

Bash Version: 4.0
Patch Level: 17
Release Status: release

Description:
        Starting a new instance of bash gives a prompt where the cursor
is right after my hostmane... ie right on top of my current directory.
So
if my prompt ends with "~/Desktop]$" the cursor will appear right on
top
of the "~" NOT in its regular position.

        Executing a command will result in the correct prompt however
hitting enter with no command typed gives the same problem. Not
exactly
a deal-braker but very annoying on occaision.

Repeat-By:
        Start bash (?) or at the prompt hit enter without typing
anything.

Fix:
        Type any text then hit enter. Problem still reoccurs though (see
above)