As I said in the MinGW list, I can reproduce the problem (tested in 1.0.30 and 1.1.2). Interactive mode of bash is not affected though (as we know otherwise no one would be able to use MinTTY with bash at all). I don't know how MinTTY determines whether to print program's output though, and I could not find any command line switch for that. However, isn't the Windows terminal console enough for you?
I mean 1.0.3 not 1.0.30.