Term doesn't work with bash in Emacs 21.2 in GNU/Linux

[bijan]

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In GNU Emacs 20.7.1 (i386-redhat-linux-gnu)
 of Tue Jun 13 2000 on porky.devel.redhat.com
configured using `configure  --mandir=/usr/man --infodir=/usr/info 
--prefix=/usr --libexecdir=/usr/lib --sharedstatedir=/var --with-gcc --with-pop 
--with-x=no i386-redhat-linux-gnu'

Please describe exactly what actions triggered the bug
and the precise symptoms of the bug:

When I run term (M-x term) in emacs 21.2, and simply run ls, emacs
will just hang. I won't be able to kill it with C-x C-c, and will have
to do C-g C-g. Sometimes ls will work the first time, and maybe the
second time, but never more than that.

This only happens in bash, it doesn't happen with any of the other
shells I have tried: ksh, tcsh, zsh. It also only happens in emacs
21.2 under Debian GNU/Linux (woody/stable) and Slackware 8.1
(Gnu/Linux); it doesn't happen in Emacs 20.7.1 running on Redhat 6.1 or
20.4.1 on Solaris 2.7.

At first I thought it was some configuration option on my computer,
but I eliminated my .bashrc and commented out all bash specific
options in /etc/profile and the same problem still happened. I also
tried it out on some other computers with the same results.

This happens so often that it makes it impossible to use bash under
emacs term.

Thanks in advance,
Bijan Soleymani

Recent input:
ESC x r e p o r TAB RET

Recent messages:
Loading timer...done
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Loading /home/trustno1/programs/elisp/rot13-text.elc (compiled; note, source 
file is newer)...
Loading /home/trustno1/programs/elisp/rot13-text.elc (compiled; note, source 
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Loading /home/trustno1/programs/elisp/insert-date.elc (compiled; note, source 
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Loading /home/trustno1/programs/elisp/insert-date.elc (compiled; note, source 
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