"IBM graphics" and xterm and nethack?

I am trying to play nethack with "IBM graphics" (the extended character set) via an xterm on the alt.org server, but when I get control characters and letters with diacritical marks when I have nethack display with this character set. However, it works fine if I telnet in via the console.

I have tried both xterm and urxvt, and tried setting "export TERM=ansi", but I don't really know what I am doing. Weird thing is that I can see extended characters on other games if I watch them.

Has anyone fixed this for themselves?
 
Someone on the nethack wiki recommended "konwert", so I installed it and I run nethack thus:

telnet nethack.alt.org | konwert cp437-utf8

Now I have pretty formats. Still can't get past level 7, though....
 
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