In this kernel I see that cursor isn't a line like "_", but it is a rectangle, and if you put it on a character it override it. Reproducible: Always Steps to Reproduce: 1.Use this kernel
Wrong product, reassigning
Well, the fbcon stuff is currently in a state of flux, so things like this can happen from time to time. Could you try the 2.6.5? There have been some changes since -rc2, maybe they'll fix the problem for you.
Ok... In 2.6.5 development-sources the problem doesn't exist. So close bug I suppose.