Do you have INPUTRC set. Mine is set to $HOME/.inputrc and I had to add that line there to get it to work.
Chris
Oh, yes, indeed that was the issue. INPUTRC is set in /etc/profile, but I guess that's only read by login shells, and so INPUTRC isn't set for non-logins i.e. opening a terminal in Gnome etc.
I wonder if this behaviour is desireable though, should INPUTRC not be set in /etc/bashrc, so all (interactive) shells have this set?
Jonathan.
