My terminal emulator is PuTTY 0.57 on Windows XP from <http://www.chiark.greenend.org.uk/~sgtatham/putty/>.
PuTTY is configured to use UTF-8 translation.
I normally use "Bitstream Vera Sans Mono", but others such as "Lucida Console" and "Andale Mono" work the same.
My TERM environment variable is routinely set to "xterm", however "putty" exhibits the same behavior.
If there is a terminfo capability describing whether a terminal support DEC VT line drawing characters, I doubt it would be useful here. PuTTY will render those characters (l, q, x, etc.) as lines if it's set to a non-Unicode character set, however if the translation (Window->Translation->Character Set) is set to UTF-8 encoding/decoding, it displays them only as their literal character values (l, q, x, etc.).
The only way I have found to draw lines in PuTTY with UTF-8 is by sending an appropriate encoding of the Unicode code points for line drawing characters (U+250C, U+2500, U+2510, etc.).
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