I´ve got some really weird behaviour going on in my ssh terminals.

1. When reading a file with a lot of text i something like "nano" and pressing the down-arrow to scroll down the text it fails to update correctly and you end up with the text merged from previous text. Pressing Ctrl+L will redraw the terminal and it looks fine again but when going up or further down the text it will be messed up again.

2. Prior to enabling UTF-8 support i was unable to press ALT_GR+2 for a @ (swedish keyboard layout). Enabling UTF-8 support solved this. But when i edit a file and set the cursor at the start of a line and press alt_gr+2 the @ is inserted as the second character.
i.e a line that read:

my line of text starts here

would end up beeing:
m@yline of text starts here

3. Pressing alt_gr+4 on the same line would end up with:
^¥$my line of text starts here

4. When pressing left-arrow once and then backspace once, "^¥" will be deleted.

This is my locale output on the server:

LANG=en_US.ISO-8859-1
LC_CTYPE="en_US.ISO-8859-1"
LC_NUMERIC="en_US.ISO-8859-1"
LC_TIME="en_US.ISO-8859-1"
LC_COLLATE="en_US.ISO-8859-1"
LC_MONETARY="en_US.ISO-8859-1"
LC_MESSAGES="en_US.ISO-8859-1"
LC_PAPER="en_US.ISO-8859-1"
LC_NAME="en_US.ISO-8859-1"
LC_ADDRESS="en_US.ISO-8859-1"
LC_TELEPHONE="en_US.ISO-8859-1"
LC_MEASUREMENT="en_US.ISO-8859-1"
LC_IDENTIFICATION="en_US.ISO-8859-1"
LC_ALL=

My keyboard layout is swedish, and i have enabled utf-8 support in the terminal.

en_US.ISO-8859-1 is not supported by terminal.
What supported is UTF8 (when selected) and current Windows code page (e.g. Win 1250 or 1252 or West/Central Eurpean countries).