How to fix Ctrl + arrows in Vim?

I am using Putty -> Suse box -> vim 7.2 combo for editing and want to remap Ctrl + arrows combo to a particular task. But for some reason, Vim ignores the shortcut and goes into insert mode and inserts character “D” (for left) of “C” (for right).

What happens when Ctrl + Alt + F is pressed?

I am looking for an explanation of what happens in Linux when this key combination is pressed to change the current terminal. In particular, what software component intercepts this key combination and changes the terminal? Is it the kernel? If it is the kernel, could you provide the location of the source file which handles this?