I've got openvz setup and operating nicely with three VEs (ubuntu7.10, centos4,
redhat9) - but shell job control does not work in any of them.

^Z should suspend the current command inside the VE when in a shell where you've
  ssh'd into the VE - but instead it remains inside the current process. I've
checked stty settings and they appear equivalent in both the VE and host.

Have I missed enabling something which is mentioned in the documentation or is
this a known issue?

I'm using 2.6.20-ovz008-openvz1 (built from source) following instructions for
how to build when using Ubuntu as the host OS.

Any pointers to how to resolve this would be appreciated.

Thanks,
Tim.