Thanks for your help. Any recent version of Linux would do. make menuconfig is the first step to build a Linux kernel and allows you to configure kernel options on an "ordinary" terminal as opposed to an xwindow.
However, as I implied in my last posting it is no longer an issue. I think the curses problem is fixed because the screen formats perfectly and all the things seem to get painted in the right place. I think using xterm term type fixed it and I think you for your help.
My problem now is to get the arrow keys to input the right character sequences to the xterm and I think this is a different issue.