See title. Seems to be a long standing bug in the upstream Debian package or something: https://bugs.maemo.org/show_bug.cgi?id=3071 . Here's my complete screenrc which also fixes a problem with the enter key in vim and changes the default escape key of screen from ctrl-A to ctrl-B put this in ~/.screenrc
bindkey -a -k fe stuff ^M
bindkey -d ^@ stuff ^?