when installed (via ipkg install mc) midnight commander had issues with utilizing my cursors (I was not able to walk through my directories). I looked through the archive and found out a solution:

• start mc
• go into pull down menus (Esc-9)
• go into options (O)
• go into learn Keys (K)
• navigate using tab till you are on the arrows
• for every arrow press SPACE on it and then the relevant arrow key
• save (go to Save button via TAB, press enter on Save)

Probably this should be fixed another way around but this brute force approach worked for me.