diff --git a/terminal/plugins/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100Emulator.java b/terminal/plugins/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100Emulator.java
index 4f8e1364d5a..76c40883f99 100644
--- a/terminal/plugins/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100Emulator.java
+++ b/terminal/plugins/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100Emulator.java
@@ -28,7 +28,6 @@
 package org.eclipse.tm.internal.terminal.emulator;
 
 import java.io.IOException;
-import java.io.OutputStreamWriter;
 import java.io.Reader;
 
 import org.eclipse.swt.events.ControlEvent;
@@ -1321,6 +1320,8 @@ public class VT100Emulator implements ControlListener {
 	public void resetState() {
 		ansiState=ANSISTATE_INITIAL;
 		text.setStyle(text.getDefaultStyle());
+		text.setScrollRegion(-1, -1);
+		text.setInsertMode(false);
 	}
 
 //	public OutputStream getOutputStream() {
diff --git a/terminal/plugins/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100TerminalControl.java b/terminal/plugins/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100TerminalControl.java
index 28bf1505a05..523779630dd 100644
--- a/terminal/plugins/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100TerminalControl.java
+++ b/terminal/plugins/org.eclipse.tm.terminal/src/org/eclipse/tm/internal/terminal/emulator/VT100TerminalControl.java
@@ -48,6 +48,7 @@ import java.io.OutputStream;
 import java.io.UnsupportedEncodingException;
 import java.lang.reflect.Field;
 import java.net.SocketException;
+import java.nio.charset.Charset;
 
 import org.eclipse.core.commands.ExecutionException;
 import org.eclipse.core.commands.ParameterizedCommand;
@@ -144,7 +145,7 @@ public class VT100TerminalControl implements ITerminalControlForText, ITerminalC
 	private boolean connectOnEnterIfClosed	= true;
 
     PipedInputStream fInputStream;
-	private static final String defaultEncoding = new java.io.InputStreamReader(new java.io.ByteArrayInputStream(new byte[0])).getEncoding();
+	private static final String defaultEncoding = Charset.defaultCharset().name();
 	private String fEncoding = defaultEncoding;
 	private InputStreamReader fInputStreamReader;
 
@@ -398,6 +399,7 @@ public class VT100TerminalControl implements ITerminalControlForText, ITerminalC
 		if(getTerminalConnector()==null)
 			return;
 		fTerminalText.resetState();
+		fApplicationCursorKeys = false;
 		if(fConnector.getInitializationErrorMessage()!=null) {
 			showErrorMessage(NLS.bind(
 					TerminalMessages.CannotConnectTo,
@@ -467,8 +469,6 @@ public class VT100TerminalControl implements ITerminalControlForText, ITerminalC
 		if (getCtlText().isFocusControl()) {
 			if (getState() == TerminalState.CONNECTED)
 				fFocusListener.captureKeyEvents(true);
-		} else {
-			getCtlText().setFocus();
 		}
 		startReaderJob();
 	}