...except for the odd comment about the unexpected escape character
echoing when you press up-arrow? That's puzzling, unless you are using
similar shells, with only one honoring cursor keys for editing, e.g,. csh vs
tcsh.
That only happens if I ssh from a local terminal to a Solaris box... a process which I systematically avoid.
Here's how I connect
Internal Boxes : ssh -n $hostname -Y xterm
DMZ Boxes : xterm -e ssh $hostname
Realistically if I need 4-5 terminals from one remote box I would spawn extra remote xterms anyway, so I just
start with a remote forwarded xterm when its available.
Another plus: spawning an xterm when SSHing into an Ubuntu box lets you avoid the retarded Canonical MOTD crap that is hard to get rid of. One box I was working on had borked routes or DNS or something (no idea which, but I did fix it), and when you would SSH directly it would hang for a couple of minutes waiting on the MOTD to time out. You could ssh X forward an xterm and get right in without waiting.
These days you have xrsh and xrlogin to do those things too.