mlterm unicode and delete key

[grepe]

Hi,
I recently switched to unicode locale and exchanged my old terminal (Eterm) to one which has unicode support - mlterm.
However, I cannot get the Delete key to work properly. When I type in some text and then return with arrow keys and press Delete it always deletes char to the left from the cursor (just like backspace).
I read lots of discussions about opposite problem - when backspace works like delete, but this is not my case. Also in other terminal emulators (xterm, urxvt, old eterm and aterm or in some graphical editor like gvim) delete works just fine.
Is this my misconfiguration issue or is there is some problem with mlterm?
(I use mlterm 2.9.4 with last available version of xorg and IceWM)
thanx