vim shows garbage characters on pressing arrow key after opening a file - vim

Question

I am getting garbage characters on pressing of arrow keys when I open a vim file.
I have also defined following in my ~/.vimrc:
set nocompatible
I am using putty for login. Is this a putty issue?
Please help
EDIT: if I remove my ~/.vimrc, then problem is also removed.

Answer 1

I have used following code as .vimrc file, and it has resolved all my problem.
" When started as "evim", evim.vim will already have done these settings.
if v:progname =~? "evim"
finish
endif
" Use Vim settings, rather than Vi settings (much better!).
" This must be first, because it changes other options as a side effect.
set nocompatible
" allow backspacing over everything in insert mode
set backspace=indent,eol,start
if has("vms")
set nobackup " do not keep a backup file, use versions instead
else
set backup " keep a backup file
endif
set history=50 " keep 50 lines of command line history
set ruler " show the cursor position all the time
set showcmd " display incomplete commands
set incsearch " do incremental searching
" For Win32 GUI: remove 't' flag from 'guioptions': no tearoff menu entries
" let &guioptions = substitute(&guioptions, "t", "", "g")
" Don't use Ex mode, use Q for formatting
map Q gq
" CTRL-U in insert mode deletes a lot. Use CTRL-G u to first break undo,
" so that you can undo CTRL-U after inserting a line break.
inoremap <C-U> <C-G>u<C-U>
" In many terminal emulators the mouse works just fine, thus enable it.
if has('mouse')
set mouse=a
endif
" Switch syntax highlighting on, when the terminal has colors
" Also switch on highlighting the last used search pattern.
if &t_Co > 2 || has("gui_running")
syntax on
set hlsearch
endif
" Only do this part when compiled with support for autocommands.
if has("autocmd")
" Enable file type detection.
" Use the default filetype settings, so that mail gets 'tw' set to 72,
" 'cindent' is on in C files, etc.
" Also load indent files, to automatically do language-dependent indenting.
filetype plugin indent on
" Put these in an autocmd group, so that we can delete them easily.
augroup vimrcEx
au!
" For all text files set 'textwidth' to 78 characters.
autocmd FileType text setlocal textwidth=78
" When editing a file, always jump to the last known cursor position.
" Don't do it when the position is invalid or when inside an event handler
" (happens when dropping a file on gvim).
" Also don't do it when the mark is in the first line, that is the default
" position when opening a file.
autocmd BufReadPost *
\ if line("'\"") > 1 && line("'\"") <= line("$") |
\ exe "normal! g`\"" |
\ endif
augroup END
else
set autoindent " always set autoindenting on
endif " has("autocmd")
" Convenient command to see the difference between the current buffer and the
" file it was loaded from, thus the changes you made.
" Only define it when not defined already.
if !exists(":DiffOrig")
command DiffOrig vert new | set bt=nofile | r # | 0d_ | diffthis
\ | wincmd p | diffthis
endif
Just save the above text as
.vimrc