Dr. Raman -
You write
"Please make sure that: 1) your terminfo environment variable points
to where emacs put the eterm specific terminfo file --depending on
your emacs installation it is somewhere under emacs/etc/.."
What terminfo file should one look for?  I have emacs 19.31, and found
/usr/share/emacs/19.31/etc/termcap.src, but that does not have
anything about eterm in it.
                       - Jim Van Zandt