TERM is now set to 'dumb' instead of 'xterm-debian' while running under debian unstable x4 + gnome

[alan]

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-pc-linux-gnu' 
-DCONF_VENDOR='pc' -DSHELL -DHAVE_CONFIG_H   -I.  
-I/home/swt/doko/export/packages/bash/bash-2.05a 
-I/home/swt/doko/export/packages/bash/bash-2.05a/include 
-I/home/swt/doko/export/packages/bash/bash-2.05a/lib -g -O2
uname output: Linux lister 2.4.12 #2 Thu Oct 11 10:03:42 PDT 2001 i686 unknown
Machine Type: i386-pc-linux-gnu

Bash Version: 2.05a
Patch Level: 0
Release Status: release

Description:
        Suddenly when I log in through either powershell or gnome-terminal, the 
TERM
        is set to 'dumb' instead of the previous 'xterm-debian' (which is what 
it used
        to be set to.  Console logins are still ok, they set $TERM to 'linux' 
as before,
        it is only under X that problems occur.  Actually, sometimes 
gnome-terminal sets
        to 'xterm', but not always.

        I could just do an 'export TERM=xterm-debian' in my .bashrc or 
.bash_profile, but
        that screws up my console login.

Repeat-By:
        Upgrading to 2.05a and log in through either gnome-terminal or 
powershell (both
        debian packages) and type 'echo $TERM'.  This is using debian unstable, 
X4, and the
        gnome environment.