I have also had an identical problem. Here are some details on how to reproduce it.
Run System/Preferences/Keyboard
On the layouts tab set the keyboard model to "Generic 105-key (Intl) PC"
Add the layout "U.S English Dvorak"
Add the layout "Germany"
Remove all other layouts
Set the default to "U.S English Dvorak"
Run Applications/Accessories/Terminal
Type the commands
cd /
ls -R
Typing Ctrl-Z during the listing should stop the output, but instead changes the character size as described by Pedro
Additional info
If the layout "Germany" is removed then Ctrl-Z works as expected
I have tried other layouts at random, some have the same effect some not.
(UK English has no effect, Switzerland causes the problem)
Ubuntu 7.10
I have also had an identical problem. Here are some details on how to reproduce it.
Run System/ Preferences/ Keyboard Accessories/ Terminal
On the layouts tab set the keyboard model to "Generic 105-key (Intl) PC"
Add the layout "U.S English Dvorak"
Add the layout "Germany"
Remove all other layouts
Set the default to "U.S English Dvorak"
Run Applications/
Type the commands
cd /
ls -R
Typing Ctrl-Z during the listing should stop the output, but instead changes the character size as described by Pedro
Additional info
If the layout "Germany" is removed then Ctrl-Z works as expected
I have tried other layouts at random, some have the same effect some not.
(UK English has no effect, Switzerland causes the problem)