I'm not 100% sure that when I call 'step' within gdb in the remote system that it takes just one step. I'm new to remote debugging, so maybe it's not behaving as I expect.
Anyway, the new pbterm-1.3 version still segfaults, so perhaps it is occurring somewhere else than in the read() function call. I'm not sure it's really worth pursuing, since without the pty working, the program will not work anyway. I'll write up some notes on using gdbserver later and put them in a new thread in this PB/Developer section. That way, you and others can try it if you like.