Brian,
I've been having the same problem with the new version. After reading this thread, I have downloaded and installed the Beta twice. The scrollback function works properly the first time I open it, but after I save the settings for that session, it doesn't work again in subsequent sessions. This is getting rather annoying.
Quick update: I just tried an experiment. The scrollback works fine if I start my session from the Absolute Telnet program itself, as saved in my program files directory. It doesn't work if I re-open a saved sesion -- which of course is what I'd rather be able to do.
If you read back through this thread, you'll notice the beta never addressed the scrolling issue. It only addressed the improper drawing and placement of things on the screen. If you are having a scrolling problem, this is still unaddressed.