Comment 36 for bug 29787

TERM=screen screen is _never_ good advice (unless you're running "screen -m" directly inside of a screen session). Also, if TERM=screen screen fixes your problem, then your problem had nothing to do with this bug, which is specifically that some terminals send ^@ screen, rather than the usual ^? or ^H.

Other backspace problems are nearly always a problem of incorrect terminfo descriptions for the parent terminal, or incorrect stty settings. Stty is the easiest to fix, so start with "stty erase ^?" and work from there.