Has anyone come across a problem where their terminal session
(ctl-alt-F1 etc, not virtual terminal) does not scroll?

I have just built a new PC and when using a terminal the words just
run off the bottom of the screen, it still responds (ie '$ exit' will
logout, clear the screen and present a new login prompt) but short of
logging out I can't see what I type or how the system is responding.

The video card is an Asus GeForce 7600GS, and the NVidia drivers have
been selected.

This only affects the native terminal session, there is no problem
using a virtual terminal once logged into a gnome desktop.