no subshell in mc with screen

[David E <edavid 1net gr>]

Hi,
I'm using screen 4.00.01, and when I try to 'ctrl-o' in mc, I get this
message: "Not an xterm or Linux console; the panels cannot be toggled",
the $TERM variable says "screen", I changed it to xterm and tried again,
this time it changes but there's no subshell, just a blank screen.
Any idea how to fix this?

Thanks in advance,
  David.

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