Unfortunately, simply using Cygwin is not enough to avoid the problem - but I am glad to know about Cygwin. We have used MKSToolkit where I work in the past.

In regard to the version:

C:\Scripts\PERL\Helpers>perl -v

This is perl, v5.6.1 built for MSWin32-x86-multi-thread
(with 1 registered patch, see perl -V for more detail)

Copyright 1987-2001, Larry Wall

Binary based on sources for build 626
  provided by ActiveState Tool Corp. http://www.ActiveState.com
Built 23:32:43 May 10 2001
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In answer to your question about Readline and Set Term (and this is probably the most significant thing.):

C:\Scripts\PERL\Helpers>perl -MCPAN -eshell

cpan shell -- CPAN exploration and modules installation (v1.59_54)
ReadLine support enabled

SetConsoleMode failed, LastError=|6| at C:\PERL\SITE\LIB/Term/ReadKey.
+pm line 24
5.
cpan>
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