Don't know how to attach a file here, so I'm posting the diff manually (it's trivial anyway):
index 6f13615..8e810a8 100644
--- a/src/main/resources/jline/keybindings.properties
+++ b/src/main/resources/jline/keybindings.properties
@@ -59,4 +59,4 @@
# DELETE, CTRL-?: delete the previous character
# 127 is the ASCII code for delete
-127: DELETE_PREV_CHAR
+127: DELETE_NEXT_CHAR.
I have played around a bit, and I think commit 48a2c2fd91c0c3a6f191b6010d3df2805bcdcb3a is actually to blame for this. I reversed that commit and have now both backspace and delete keys working properly on Ubuntu 9.04.
