Hallo,
investigating further, I found that winedbg uses ReadConsole to get what the debug-user typed in, however ReadConsole by far doesn't behave as expected, namely to give back the VT100 codes for what the user typed in. At present arrow key presses are never delivered to winedbg and if winedbg runs on the staring console, input is only delivered to winedbg after the user entered "Enter".
Bye