After upgrading to AIX 6.1, you may notice that some terminal behaviors have changed. SMIT loses it’s pretty boarders when commands execute. When you leave commands like more or vi, the screen clears. And, some function keys may not work.
The problem is that IBM decided to change their TERMINFO file for xterm. If you want the old xterm file, just copy /usr/share/lib/terminfo/x/xterm from any AIX 5.3 system. You can also try setting your TERM type to xterm-old or xterm-r5, but copying the old file works better for me.