Didn't have rxvt installed. Used the standard Cgywin window. I noticed that there was an update to Cygwin
and am downloading it now. After seeing your question I checked for rxvt but hadn't installed it. I now have it in the list of items to download and install. I did log into my Mandrake 8.1 box that has perl 5.6.1 and tried Hanoi.pl there and it runs properly. Will try it using rxvt under WinME as soon as the download finishes (56k connection for the LAN so is taking a while) and see how it goes.
FWIW... I just downloaded and installed MacPerl on my old Power Computing PowerCenter 120 running MacOS9.1. I grabbed the Hanoi.pl code and ran it and am getting the same type of output as when running it under Windoze that one4k4 shows above.
Update: Got rxvt installed in cygwin and Hanoi.pl displays fine in it. Still displaying as above in in straight bash shell window.