long lines not wrapping correctly in Mac OS X

[agl]

I'm using bash 2.05b.0(1) on Mac OS X's Terminal app, and ever since I
changed my prompt to the following:

PS1=$'\[\e]2;\]\h\[\a\]\h:\w \u\$ '

(to have the hostname dynamically appear in the window title) long lines
don't wrap anymore. In other words, if I enter a long command name after
reaching the right margin the cursor overwrites the left one, without moving
to a new line. The problem disappears immediately if I don't use escape
sequences in the prompt. I've also tried bash 3.2.9, and things are exactly
the same (no problem with vanilla prompt, same problem with the previous
prompt).

Is this a (known) bug, or is something wrong with my prompt sequence?

Cheers,

Artemio
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