Can you narrow down the problem to being at your end of the connection or the
server end?

In other words, do you have this problem no matter what you are doing on the
remote machine (nano, vim, emacs, any other editor you choose; also just
generally reading console output of commands, and editing bash commads as you
type them), which would suggest it seems to be a local problem with putty, or
is the problem only when you're using nano, and it's the way that particular
application is manipulating the cursor which is causing problems (in which
case, I recommend trying vim as an alternative to see whether it works
better)?

Antony.

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