I am using Emacs 22.3.1 and the Control-G command will not work to cancel. I took my init.el file out of the mix and it stills does not work. I am not sure when I upgraded from 20.4 to 22.3.1, if it worked, but it certainly does not now.
3 tests.
Does this occur at a character session at the console?
Does it occur at a graphical session on the console, and finally does it work at a terminal emulation session?
Assuming that this is all on SCO.
This only happens when I am in emacs. I have a copy of mince, which is emacs-like. I am able to use Control-G. I can press Control-G at the terminal and hear the bell.
I even rolled back bash on my SCO Openserver from 2.05a to 2.03. That did not make a difference.
I wanted to start at the keyboard to see if ^G (7) was really being generated and transmitted by the terminal driver / stty not mapping ^G to something other than a value of 7.
If ^G is getting to programs like bash (you said you heard a bell), and mince (which I have never heard of), then it seems like a flaw in the version of emacs that you are using.
I searched briefly on the web and found nothing that seemed to be on target.
If no one seems able to help you here, you may need to ask at a site that is more emacs-centric.