Okay, so I've narrowed down the problem.. this ONLY happens when I'm sshed into another server (any server). When I use the local graphical emacs, the ALT key functions as expected.
---------- Post added 7th December 2011 at 02:23 AM ---------- Previous post was 6th December 2011 at 03:43 PM ----------
These solutions here fixed the problem:
<https://bugzilla.redhat.com/show_bug.cgi?id=626792#c20>
...
"For testing purposes, I've build a vte package with this patch applied, see
http://thm.fedorapeople.org/vte/
"