Copy this to your home folder and then screen behaves sanely.

.screenrc

# Sets the screen to use login shells
shell -$SHELL

# To reload .screenr Press Ctrl - a : source ~/.screenrc

# Turn of startup message
startup_message off

# This helps prevent the screen from doing funny things.
defflow off
defnonblock on

# Enable 256-color mode when screen is started with TERM=xterm-256color
# Taken from: http://frexx.de/xterm-256-notes/
# I took it from: http://www.robmeerman.co.uk/unix/256colours 
#
# Note that TERM != "xterm-256color" within a screen window. Rather it is
# "screen" or "screen-bce"
# 
# terminfo and termcap for nice 256 color terminal
# allow bold colors - necessary for some reason
attrcolor b ".I"
# tell screen how to set colors. AB = background, AF=foreground
termcapinfo xterm-256color 'Co#256:AB=\E[48;5;%dm:AF=\E[38;5;%dm'

# Sets the status bar
caption string "%?%F%{= Bk}%? %C%A %D %d-%m-%Y %{= kB} %t%= %?%F%{= Bk}%:%{= wk}%? %n "
hardstatus alwayslastline
hardstatus string '%{= kG}[ %{G}%H %{g}][%= %{= kw}%?%-Lw%?%{r}(%{W}%n*%f%t%?(%u)%?%{r})%{w}%?%+Lw%?%?%= %{g}][%{B} %d/%m %{W}%c %{g}]'