Both NetBSD and OpenBSD have implementations based on pdksh, each has their own customizations.
PS1 on NetBSD's ksh doesn't support the special backslash characters that are supported by OpenBSD's ksh and GNU's bash.. but you're not making use of them.
Make sure you reload the .Xdefaults file, or restart X.
$ xrdb -load ~/.Xdefaults
Hope that helps.
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