problems with bash and latest readline

[burning shadow]

After installing latest readline I have problems in bash. I have PS1
set to '\[\e]0;\u@\h:\w\a\]\u@\h:\w\$ ' and this gives me prompt with
1 extra space. If I change PS1 to '\[\e]0;\u@\h:\w\a\]\u@\h:\w\$', I
get 2 '$' signs in prompt: 'shadow@loshadka:~$$'.

shadow@loshadka:~$$bash --version
GNU bash, version 3.2.9(10)-release (i686-pc-cygwin)

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