diff -rupN dynamips-0.2.7/dev_vtty.c dynamips-0.2.7-working/dev_vtty.c
--- dynamips-0.2.7/dev_vtty.c	2007-05-26 11:52:33.000000000 +0200
+++ dynamips-0.2.7-working/dev_vtty.c	2009-06-18 15:49:30.000000000 +0200
@@ -1004,6 +1004,7 @@ void vtty_put_char(vtty_t *vtty, char ch
             vm_log(vtty->vm,"VTTY","%s: put char %d failed (%s)\n",
                    vtty->name,(int)ch,strerror(errno));
          }
+	fflush(vtty->fstream);
          break;
 
       case VTTY_TYPE_SERIAL:
diff -rupN dynamips-0.2.7/ppc32_exec.c dynamips-0.2.7-working/ppc32_exec.c
--- dynamips-0.2.7/ppc32_exec.c	2007-05-26 11:52:33.000000000 +0200
+++ dynamips-0.2.7-working/ppc32_exec.c	2009-06-20 08:53:09.000000000 +0200
@@ -228,6 +228,23 @@ void *ppc32_exec_run_cpu(cpu_gen_t *gen)
 
       /* Normal flow ? */
       if (likely(!res)) cpu->ia += sizeof(ppc_insn_t);
+    
+      // Handle single-stepping here if the single-step bit is set
+      if (cpu->msr & PPC32_MSR_SE)
+      {
+	// I am not totally sure what happens here. This piece of
+        // code was added to make single-stepping work with the GDB
+        // server on the Cisco 2600 work. Every time we single step using
+        // that GDB server we return from an interrupt (rfi) with the
+        // SE bit set. The next instruction is the one being single-stepped
+        // then. That next instruction is the one executed below.
+
+         ppc32_exec_fetch(cpu, cpu->ia, &insn);
+         res = ppc32_exec_single_instruction(cpu, insn);
+		
+         if (!res) cpu->ia += sizeof(ppc_insn_t);
+         ppc32_trigger_exception(cpu, PPC32_EXC_TRACE);
+      }
    }
 
    /* Check regularly if the CPU has been restarted */