Terminal mode does not seem to deal with newlines "correctly"

I do M-x term
Then run /bin/csh in that terminal window.  
If I try to run (say) "less" in taht window at the end of each line of output
I get a linefeed, but no CR.  THe following line just starts at the column
position where the previous line ended.
I get similar behavior if I run vi or mutt in the window.
(The fancy terminal features of mutt seem to work OK -- it's just that the
text lines get shifted out to infinity.)

I am running xemacs 21.4 (patch 13)
When I do echo $TERM inside the terminal window it says "eterm"

Is there something special I need to do to make this work?

Thanks,
Leonard