The default msysgit sh exports the TERM variable as dumb, resulting in complicated command line handling

Better msysgit.markdown

Instead of

%comspec% /c h:\Git\bin\sh.exe --login -i

try to run it with:

%comspec% /c h:\Git\bin\rxvt.exe -e /bin/sh --login -i

And set the environment accordingly, e. g. in .bashrc:

case $TERM in \
 '') export TERM=${TERM:-xterm};; \
esac

etc.