ReadUnfocused causes whitespace to be deleted behind cursor in current non-conque window

What steps will reproduce the problem?
1. let g:ConqueTerm_ReadUnfocused = 1                                           

2. create two windows
3. run a ConqueTerm in one window, and open a file (e.g. a Python script) in 
the other window
4. Write some code that causes auto-indentation, e.g.:
    def dummy():
        print "dummy"
5. Hit enter, and vim will properly autoindent.  Now wait, staying in insert 
mode.

What is the expected output? What do you see instead?
After a short interval, the cursor will move to column 0, deleting all the 
whitespace that auto-indentation has created, effectively losing indentation.

This also happens when typing a line and having trailing whitespace, e.g. type 
"d = t + " (notice trailing space).  Sometimes, if I type a character AFTER 
that space, the space is removed before the character is inserted.  Say I type 
the character 'c', then instead of getting "d = t + c" I get "d = t +c" (notice 
the space between the plus and the 'c' has disappeared).

Disabling g:ConqueTerm_ReadUnfocused removes this behaviour.

What version of the product are you using? On what operating system?
ConqueTerm 2.1 (vimball archive)

MacVim 7.3:
VIM - Vi IMproved 7.3 (2010 Aug 15, compiled Aug 15 2010 22:03:01)
MacOS X (unix) version

macports vim:
VIM - Vi IMproved 7.3 (2010 Aug 15, compiled Feb 26 2011 18:22:34)
MacOS X (unix) version
Included patches: 1-125

MacOSX 10.6.7

Please provide any additional information below.
The issue is present in both macports vim on the terminal and MacVim.

Original issue reported on code.google.com by mic.sca...@gmail.com on 28 Apr 2011 at 7:05

AshokEmrys / conque

ReadUnfocused causes whitespace to be deleted behind cursor in current non-conque window #51