Term mode and cygwin bash issues

[snikeris]

Hi all,

I'm trying to use cygwin's bash.exe in term-mode.  When I type "M-x
term", emacs prompts me for which program to use.  It defaults to
bash.exe, which is what I want.

However, the resulting shell is all messed up.  If I type 'ls', the
output looks like a staircase:

file one
          file two
                    file three

etc.

Also, there is no prompt.

M-x shell uses the bash correctly however.

I've done some Google searching to no avail.

Any ideas?