Version:           1.5 (using KDE 3.4.0 Level "b" , unofficial build of SUSE )
Compiler:          gcc version 3.3.3 (SuSE Linux)
OS:                Linux (i686) release 2.6.5-7.151-smp

I've fired up a konsole window (version 1.5) under SuSE Linux 9.1 running KDE 3.4, I've then ssh'd (OpenSSH_3.8p1) to a Apple Mac running Mac OS X (10.3.9), at the command prompt I hold the shift key down and press the return key my connection freezes and I can no longer enter anything at the console. 

Although I can't type anything, I can get stuff displayed, i.e. I can send text from another session to be displayed into the frozen window..

It would appear that the terminal session running on ttyp1 has somehow got munged. I can see this, if I run another sessions to the machine on ttyp2

steve@macos(ttyp2)$ stty < /dev/ttyp1
speed 38400 baud;
lflags: -icanon -echo echoe echok echoke echoctl
iflags: -icrnl ixoff -ixany -imaxbel
oflags: -oxtabs
cflags: cs8 -parenb
dsusp   eol     eol2    lnext
<undef> ^@      ^@      <undef>
steve@macos(ttyp2)$ stty
speed 38400 baud;
lflags: echoe echok echoke echoctl pendin
iflags: ixoff -ixany -imaxbel
oflags: -oxtabs
cflags: cs8 -parenb
eol     eol2
^@      ^@
steve@macos(ttyp2)$ 

....
actually I've just noticed that ^C will terminate the hang, but I still am confused as to whether it should happen