I got my plugs yesterday and less than 24 hours

I have installed webmin and used it to create a new user.
The problem I am having is that if I ssh in as the new user using cygwin, I find that it is almost unusable. Very few commands work but that is not the only problem. I have also found that I cant use simple editing like backspace either. If I su from there into root, then all works as it should do.
Is there somthing wrong with the default config that needs hacking or am I missing the blindingly obvious?
If the following helps, the setup did create a new home dir and the group was setup with the same name as the user. Plug is ubuntu 9,04 multiboot.
Thanks in advance of any pointers.