Changing 'TerminalType' breaks control sequences

[Windos]

My understanding is that PuTTY's default TerminalType is 'xterm', but the current version of Merge-PSPuTTYTheme explicitly sets this to 'putty-256color'.

This change means that control sequences I'm accustomed to, including simple things like hitting the up arrow to repeat the previous command, aren't working.

My assumption is that the new TerminalType was chosen due to the 256 colour support, however I think (without having looked too much into it) that the default behaviour of PuTTY is to support xterm 256-colour mode.